Limit to Tax free loan to spouse

S R Reddy (C.A) (60 Points)

04 September 2022  

Dear sir,

I client received  more than one crore as capital gains from sale of housing property. Out of this amount, he wants to lend about 50 lakhs to his wife as interest free loan for a period of 5 years. Please confirm whether this transaction attracts income tax either for him or his wife. They are both individual tax payers under the income tax law. Thanking you in anticipation.