29 January 2012
I am running a gold ornaments business. i want to know that, can i take the gold loan in phyiscal form, from my family members file. there are gold ornaments available in there file. I will take the loan in commidity mode and show the valuation in my file and will pay the interst on that to the family members after deduction of T.d.s. My C. A sir is not allowing me to do this as is not allowed in I. Tax U/s 269. what can i do please clarify me. Thank You, manish gupta manishraj_01@sifymail.com
29 January 2012
1. 269SS covers only the amount of money taken in the form of loan, so gold commodity given on loan will not be covered u/s 269SS.
2. But I think it will be covered by the provision of section 61 of Income Tax Act, i.e all the income arising to you on such loan, will be taxable in the hands of transferor.
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