Impact of taxation on this transaction
This query is : Resolved
22 September 2011
suppose if Mr. A transfer Rs 20lacs from his bank account to his brother who is engaged in business of construction, so what will be the effect of this transaction?
whether this funds transfer can be shown as a gift, or this has to be shown as loan in balance sheet of his brother
whether the income earned by his brother on rs 20 lacs need to be clubbed???
whether this funds transfer can be shown as a gift, or this has to be shown as loan in balance sheet of his brother
whether the income earned by his brother on rs 20 lacs need to be clubbed???
22 September 2011
Dear Anshul
The transaction will be treated as Loan (unsecured).
The transferor may get the Interest on such loan max. @12% and no other income will be clubbed.
Further these transaction is not in the nature of gift hence question of gift does not arise as it is not supported by gift deed.
The transaction will be treated as Loan (unsecured).
The transferor may get the Interest on such loan max. @12% and no other income will be clubbed.
Further these transaction is not in the nature of gift hence question of gift does not arise as it is not supported by gift deed.
23 September 2011
I agree with the expert
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- Under construction property in ITR
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- Building tax payment deduction in rental Income
- Upload Level ValidationITR3Category of Defect B/D
- Booth for sales promotion
- Presumptive income under Income tax act 2025
- TAX AUDIT QUESTION
- VALUATION OF PRIVATE LIMITED COMPANY SHARES
- LIABILITY ADJUSTMENT
- Capital Gains on sale of residential flat
- Accounting with Claude
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
