Loan to wife

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

27 February 2017 Dear All, Please note i have taken a Flexi loan facility(pay only interest on used amount) on the basis of my Salary for 15% . I intend to give the amount say Rs.5.00 lac and charge 16% from her.She will be investing/trading in shares.
1. Shall i show interest income (16-15) in my returns.
2.Did she can show the interest paid to me as expense for his Share trading business.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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28 February 2017 Yes you should show interest received from her in your return and she can claim interest paid to you as expense from her share trading business.

Querist : Anonymous

Querist : Anonymous (Querist)

28 February 2017 Thanks Abhishek Noted and will have proper accounts. One more query shall i show the interest paid by me as expense means netting off income in my returns ( Interest received by me from my wife less interest paid my be to banker). Please advcice

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CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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28 February 2017 Yes if interest from wife is received through bank i.e. through bank transfer or cheque you can show interest paid to bank as expense out of such interest income. as under income from other sources expenses incurred for earning any income is deductible out of such income.

Querist : Anonymous

Querist : Anonymous (Querist)

28 February 2017 Dear Abhishek May i know the documents to be executed between me and my wife