One of my client is a business woman and she is a divorcee, who received newly purchased flat from her ex-husband as alimony in the financial year 2018-19 as settlement at the time of divorce. In which some payment done by her husband by transfer in her bank account and then that payment done from her account by cheque to the selling party and the remaining amount is taken as home loan and paid to the selling party.
Every month on the previous day of EMI amount is transferred to her account from her husband which is paid to the bank as the regular EMI. Now, my first Question is whether the amount of EMI transferred by her husband every month is taxable in hands of my client? and my second question is, Whether the home loan interest as well as the principal can be taken deduction against the income of their business?
thanks in advance...
CAclubindia
