Clubbing of Income - Loan for Shares

This query is : Open

Kapil Khanna (Querist)
Follow

17 July 2011 I give an interest free loan to my wife of 1 lac. She uses it to trade in shares (futures & options) and generates income of 10k p.m. 1. Will this income be clubbed with my income?
2. If I charge interest on loan, can I avoid clubbing of income?

Please advise.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

17 July 2011 Since it is a loan, you have a discretion to receive it back, the only thing which may considered to be added in your income is interest on this loan, that too when the funds were borrowed by you by paying certain interest.

*

Clubbing provisions are not attracted, now choice is yours.

If you are paying interest to any person on the amount borrowed, you may charge interest, otherwise there is no problem.

Kapil Khanna

Kapil Khanna (Querist)
Follow

17 July 2011 The loan is from my accrued capital, so no interest on borrowings.
My only objective is that clubbing of income should not happen.
Please advise whether I should charge interest from wife or not.
Thanks.

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

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Santosh Behera

velichety.l.narasimharao

nilesh

CA Jyoti Singh

Sagar Khakhiwala

Subscribe Now

Clubbing of Income - Loan for Shares

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

CA Final

GST CONSULTANCY

Accountant

Manager- Finance and Compliance

GST CONSULTANT

Senior Executive