Title says it all!!
Lets assume there is a person named Yash and he has his HUF 'Yash HUF' where he is the Karta. Yash has made a loan of Rs.15 lac to the HUF in a year which the HUF has invested in Fixed Deposit and earned interest Rs.150000. Will this interest be taxed under HUF's hands or will this be clubbed under Yash's hands?
HERE YASH IS LENDING THE LOAN TO HUF AND IF COLLECTING INTEREST THERE ON AND ASSESSING OFFICER IS SATISFIED THAT THIS ACT IS NOT DONE TO EVADE TAX THEN IT WILL NOT BE CLUBBED IN THE HANDS OF YASH.
OTHERWISE IF IT IS INTEREST FREE LOAN THEN THE SHARE OF INTEREST EARNED BY SPOUSE AND MINOR CHILD WILL BE CLUBBED IN HANDS OF YASH
| Originally posted by : nuli swami ayyappa | ||
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HERE YASH IS LENDING THE LOAN TO HUF AND IF COLLECTING INTEREST THERE ON AND ASSESSING OFFICER IS SATISFIED THAT THIS ACT IS NOT DONE TO EVADE TAX THEN IT WILL NOT BE CLUBBED IN THE HANDS OF YASH. OTHERWISE IF IT IS INTEREST FREE LOAN THEN THE SHARE OF INTEREST EARNED BY SPOUSE AND MINOR CHILD WILL BE CLUBBED IN HANDS OF YASH |
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Thanks but I'm slightly confused. I'm just talking about 'Yash' & 'Yash HUF'. From where did Spuse and Minor child come in the picture?
CAclubindia
