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Tax treatment

RAKSHIT MEHTA (tax consultant) (114 Points)

20 June 2017

unsecured loan is shown in books of wife in name of husband, the husband is now dead, what ll be the treatment of that loan in wife's book of accounts?

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21 Replies

Ashiwini Ballodia (Managing Partner at TAXounting) (8737 Points)
Replied 20 June 2017

As per me the loan will be recorded in the name of legal heir in the books of wife

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RAKSHIT MEHTA (tax consultant) (114 Points)
Replied 20 June 2017

SIR, WHAT IF WIFE IS THE ONLY LEGAL HEIR??

(Guest)

Write it off.

Ashiwini Ballodia (Managing Partner at TAXounting) (8737 Points)
Replied 20 June 2017

Agree with Mr.Manish

RAKSHIT MEHTA (tax consultant) (114 Points)
Replied 20 June 2017

WHAT ENTRY WOULD BE PASSED IN THE BOOKS TO GIVE EFFECT TO THIS TRANSACTION?

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Ashiwini Ballodia (Managing Partner at TAXounting) (8737 Points)
Replied 20 June 2017

1st you will transfer all the asset & liability of husband in wife books and than you should write it off by passing a journal entey

Jayesh Sharda (none) (38 Points)
Replied 20 June 2017

If this is a asset-Writing it off might cause the wife to pay tax on such income, which would have already been paid by her husband. Its better to show it as a repayment.