Loan to wife

This query is : Resolved

DINESH KUMAR (Querist)
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30 October 2011 I AM A GOVT.EMPOLYEE. I HAVE GOT A MATURITY OF LIC POLICY.I HAVE GIVEN ENTIRE AMT.TO WIFE AS LOAN BY CHEQUE.MY WIFE HAS FIXED IT IN BANK & SHE IS ALSO AN ASSESSEE. WHETHER THE INTT.AMOUNT WILL CLUBED IN MY INCOME OR IT WILL BE THE INCOME OF WIFE? WHAT ARE THE TAX IMPLICATION ON SUCH INTT.AMOUNT IN FUTURE.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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30 October 2011 Interest of FDR can be clubbed with your income. ( Section 64(iv))

DINESH KUMAR

DINESH KUMAR (Querist)
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30 October 2011 AS PER MY KNOWLEDGE ,AN ASSESSEE CAN GIVE ANY AMOUNT TO HIS WIFE AS LOAN.THEN HOW THE INCOME ON THAT LOAN WILL CLUBED

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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30 October 2011 Then..this can be treated as a case of transferring the income without transferring the asset.
If you charge interest on such loan then only you can feel free.