Loan

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This query is : Resolved

Dharmendra soni (Querist)

24 July 2009 Mr. x running a business in propriatory concern and also his wife Mrs. x running her saprate business
Now Mrs. x take a loan from LIC of Rs. 2,00,000
and want to give it to his husband Mr. X
whether she can give loan in Cash or use the money in her own business and take the Interest advantage in his personal return.
and if she given a loan to his husband Mr. X have to pay Interest to Mrs. X which is include in Mrs. X Income
so Please Suggest me how i can take handle the this situation
Urgent

Aditya Maheshwari

Aditya Maheshwari (Expert)

24 July 2009 Mrs. X has taken a loan from LIC and hence would be paying interest to LIC on the said loan and will claim interest expense in her own account.
If Mrs. X gives loan to Mr. X then Mr. X will have to pay interest to Mrs. X as she has borrowed to lend.

NITIN

NITIN (Expert)

24 July 2009 1. Mrs is require to pay interest to LIC in any situation
2. If shh gave loan to him than such transction is require to made in account pay cross cheque
3.She is entitled to take interest from him and such interest is her income and interest paid on loan is taken as business income and interest received as considered as business/income from other cases

Dharmendra soni

Dharmendra soni (Querist)

28 July 2009 thank you sir but i would like to know what way is more benificial

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