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Loan with interest to wife?

This query is : Resolved 

13 July 2011 Lets say I lend money to my wife and charge a nominal interest (say 5% p.a.). My wife uses this for business / investment (as proprietor) and earns profit at 20% p.a.
Will wife's income (from business / investment) be clubbed with my income?
Please advise.

13 July 2011 If u have given the loan to your wife for business purpose then provision of clubbing income not attracted

13 July 2011 Is there a problem if I dont charge interest on the loan?
Please advise.


13 July 2011 not any problem if you donot charge to interest



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