Both are can file it returns

This query is : Resolved

YELLANKI RATHNAGIRI (Querist)
Follow

17 August 2012 Dear all,

my Clint has one net centre, he is getting taxable profit from that, now he is completely in civil works and real estate works, net centre maintenance taken by his wife

my bout is
now both are can file IT Returns
or
net centre income should be clubbed in his income

CA Guru M

CA Guru M (Expert)
Follow

18 August 2012 Husband & Wife are two different assesee hence they have to file their IT return separately.

YELLANKI RATHNAGIRI

YELLANKI RATHNAGIRI (Querist)
Follow

18 August 2012 Dear ACA Guru,

my doubt is
in this case wife did not invest any amount and she has taken only maintenance then how can she file the IT Return

CA Guru M

CA Guru M (Expert)
Follow

18 August 2012 She can charge consulting fee for maintenance of centre.

It will be allowed as expenses in the hands of Husband.

And that Consulting fee will be income to wife.

CA Guru M

CA Guru M (Expert)
Follow

18 August 2012 Just because she has not invested anything, not required to file return does hold good.

There are other way also, as whatever invested by Husband can be treated as loan.

But before treating it as loan, exact details to be checked.

In second option whole income of the centre will be taxed in wife hands.

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
Follow

18 August 2012 Agree with ACA Guru M.

I'd like to add one more point. If the assessee chooses the second option of treating husband's investment in net centre as a loan, she can also claim interest on such loan against the net centre's income.

Of course, they need to document the loan and should charge a reasonable interest

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now