04 April 2021
I want to fullfill my financial requirment for my business to make a overdraft limit on a FD this FD amount money is come from as a gifted money; which come from my father mother and from spouse, in this FD 90% share is of above relatives and 10 % share is mine ; what kind of complications in this kind of transaction ? Kindly suggest me what to do who pay interest on overdraft limit and who take interest on FD ? I am confused; please guide me .
04 April 2021
You have to pay interest on over draft limit as it's used for your business. You can take interest on FD as the money is gifted to you. But on the interst on FD portion of money gifted by spouse clubbing provisions applicable.
05 April 2021
I pay incometax on fd interest they why my spouse also pay income tax on interest I am taking the responsibility to pay incometax on fd amount, government need tax which is paid by me is their any issue
05 April 2021
In your case it's okay you pay income tax but in many cases spouse who received the gift don't have taxable income that's why government introduced clubbing provisions. Exclude the amount from your taxable income.
CAclubindia
