Loan to spouse

If you charge interest you have to show interest income under income from other sources.

You can give loan to your wife and charge interest on it, but you have to add interest in your total income and tax may be payable. 

Whether it is with interest or without interest - Is it not that there has to be cosideration for the loan availed, according to latest IT provisions.   Can somebody clarify

vsraj

In case of loans given to the close relatives the only thing which is keenly observed by the IT officers is , whether the amount has been availed out of the borrowed interest bearing funds or own funds.  

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In case the husband avails his money to his wife in the form of  interest free loan the department can not ask about the consideration.(Humour-specially when the AO is a married guy) 

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(In practical also wife has more exectuive powers on the income earned by the  husband 

Thank you Mr.Paras Bafna for your prompt reply.   When I give a loan to my spouse, should I do it by way of

Promissory note in a stamp paper or

a simple document in a paper or

the cheque I deposit in my spouse,s account can be considered as a valid document in this regard.

Thank you in advance

vsraj

Thank you Mr.Patel for your reply

vsraj