Unsecured loan to wife

Hi,

1.Correct. Will be clubbed.

2. Correct.But u should charge interest on such loan (as interest free loan will be treated as mere transfer of money and clubbing is attracted).

3. U two can purchase property together and register the property jointly so that both can claim deduction of interest on loan.

Hi,

Income from assets transferred to spouse becomes taxable under provisions of

section 64 (1) (iv) as per following conditions:-

• The taxpayer is an individual

• He/she has transferred an asset (other than a house property)

• The asset is transferred to his/her spouse

• The asset is transferred without adequate consideration.

How do I ensure that I ensure that I meet the clause of ADEQUATE CONSIDERATION so that Income becomes taxable in her hand and not mine?