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Gift to relative

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Mohd. Naseem Bari

34 Points Posted on 17 January 2020

One of my friend has already given loan to his wife, but now he want to gift the loan amount.

Can he gift the loan,

if yes what will we the tax implication?

Is clubbing applicable?

Replies (3)

Quick Summary

This discussion addresses whether an individual can gift a loan amount previously provided to their wife and the subsequent tax implications. It specifically questions the applicability of income clubbing rules under Section 64(1)(iv) & (vi) of tax law, particularly when assets are transferred to a spouse without adequate consideration.

RAJA P M

"Do the Right Thing...!!!"

128157 Points Posted on 17 January 2020

Originally posted by : Mohd. Naseem Bari
	One of my friend has already given loan to his wife, but now he want to gift the loan amount. Can he gift the loan, if yes what will we the tax implication? Is clubbing applicable?

One of my friend has already given loan to his wife...???

What is this mean...??

Can You elaborate this transactions...???

CA. Rohan Somani

Chartered Accountant

94 Points Posted on 17 January 2020

Asset transferred to spouse (directly or Indirectly) Otherwise than adequate consideration; and NOT under an agreement to live apart, Then income earned from such asset shall be clubbed in the hands of Transferor to extent only amount proportionately relatable to inadequate consideration. Sec. 64(1)(iv) & (vi).