CCI Online Learning
What do you want to learn today?
     
CIBIL

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Loan to wife


fardin khan (fdg)     19 January 2015

fardin khan
fdg 
 1 likes  66 points

| My Other Post

My income level falls into 30% income tax bracket while my wife is not working.  I want to loan some amount to my wife for investing in stock market - she will do the research and do trading herself.  Will the short term capital gains from her investments be clubbed with my income or will that be treated as independent income.  My queries are: 1) Can my wife treat the interest paid to me on the loan amount as expense and deduct that amount from her Short Term Capital Gains while computing her tax 2) To avoid the clubbing of inome rule (income tax law section 64), do I have to charge a minimum interest to my wife? If yes, what is the interest rate.  3) Is there any limit on the loan term? 4) What are the document that needs to be prepared to make the loan contract valid? Does it have to be written on stamp paper/notarized etc?

 Thanks and regards

fardin 

Sai Prasadh (Investment advisor)     20 January 2015

Sai Prasadh
Investment advisor 
 5 likes  139 points

View Profile | My Other Post

Dear sir

(1) In respect of short term capital gain for yr wife, she can clain interest paid to u & brokerage to stock broker can be deducted from STCG.

(2)To avoid clubbing of income u need to charge minimum lending rate fixed by SBI

(3) no ceiling limit for loan amount

(4) Buy ten rupee stamp paper and print the loan agreement.

avater

fardin khan (fdg)     20 January 2015

fardin khan
fdg 
 1 likes  66 points

View Profile | My Other Post

Thanks What will be the effect of giving loan to my wife In my return should I consider loan amount in my income ?

Sai Prasadh (Investment advisor)     21 January 2015

Sai Prasadh
Investment advisor 
 5 likes  139 points

View Profile | My Other Post

Sir

your income is taxed under what head ???

avater

fardin khan (fdg)     21 January 2015

fardin khan
fdg 
 1 likes  66 points

View Profile | My Other Post

Its taxable in Salary HP n others


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  



Popular Discussion


view more »



Trending Tags
GST Live Class    |    x