How to give x amount of savings to wife to start business

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sunil singhani (Querist)
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02 March 2012 I want to give 10 lac amount of my saving to my wife to start business of broking. If i gift her this amount, income from her business will be clubbed in my income... Other way is to give her a loan through cheque and charge the interest rate same or bit more as per bank fix deposit rate.... Please suggest me what to do and what will be the process to loan her the amount, what documents (i.e. stamp paper or any other)would be required to be signed by her & by which transaction stays under the income tax law....

thanks,

CA. Hari Kishan

CA. Hari Kishan (Expert)
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02 March 2012 The amount may be paid as LOAN by way of a account payee crossed cheque.. You could charge interest at bank rates..

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anurag

anurag (Expert)
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02 March 2012 interest should not be less than market rates.

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sunil singhani

sunil singhani (Querist)
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03 March 2012 Thank you experts for the prompt reply.. If i issue a account payee crossed cheque other than that Kindly suggest whether any stamp paper or document to be signed by me or my wife for this transaction...

thanks
regards,

anurag

anurag (Expert)
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03 March 2012 u can make a gift deed or loan agreement as a backup paper.

sunil singhani

sunil singhani (Querist)
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13 March 2012 Thank you experts, Please tell me how do i make an loan agreement for this transaction what stamp paper do i need to buy and what deed(deed example or language) to be mention on the stamp paper.... Please help

thanks in advance

regards,
sunil

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