Loan from wife and sons

This query is : Resolved

dheeraj kumar (Querist)
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23 July 2014 Sir

In sole properietorship concern whether the properietor can take loan from wife and sons who are doing job

Whether he can also give interest to wife and sons and claim deduction

what should be interest% is there any income tax rule in this regard or it is their own will

CA Shashank Jain

CA Shashank Jain (Expert)
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23 July 2014 Yes the proprietor can take loan from wife & sons in the concern & can also claim deduction on it. Rate of interest is as per mutual agreement & IT Act does not specify any rate in this regard.