Govind Inani (Business) (203 Points)
16 September 2010An assessee has given Rs. 11,00,000 to one party (non relative). And he is earning interest income on this amount. The annual interest comes to Rs. 1,32,000 (11,00,000*12%).
Now from F.Y. 2010-11, he is having salary income of Rs. 5,00,000 in addition to above interest.
My question is whether he can give the above amount of Rs. 11,00,000 to his wife as an unsecured loan so that interest income would be chargeble to his wife and he would be chargeble for only his salary income.
Krishna Chaithanya M
(CA in Practice)
(22 Points)
Replied 16 September 2010
As per Sec 64(1) of IT act any income arising out of asset transfered to spouse other than by adequate consideration will be clubbed along with individual,s income. So even if he give the amount of Rs. 11,00,000 to his wife as an unsecured loan interest income would be clubbed in his income along with salary.
CA Pramod Jain
(manager finance)
(1577 Points)
Replied 17 September 2010
ya agree income would be clubbed in his income.
Kamal Jain
(FCA)
(200 Points)
Replied 17 September 2010
He can gift this money to his father. Accordingly interest income will be taxable in the hands of father of assessee.
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