Best way to Show Rent & Interest income

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  1. ZED

    ZED Well-Known Member

    A little confused while reading the opening paragraph and the closing paragraph of you this post.

    Husband should give an interest free loan to her wife for a predetermined period ,and then the wife should loan out the money ,and earn interest income ,and repay the loan taken from the husband. This way the interest income will be considered as that of wife and she can apply for loan etc by filing her ITR. The income will not be clubbed in this mode.
     
    Vivek Rusia likes this.
  2. Vivek Rusia

    Vivek Rusia New Member

    Dear ZED, thanks again for tour valuable comments.

    Is there any mandatory formality/documentation (e.g. Loan agreement etc.) they need to do? Or If simply husband transfers an amount to wife's account and after a certain period wife transfers back the same amount to husband's account, is sufficient.
     
  3. ZED

    ZED Well-Known Member

    Loan agreement should be prepared in written. I think I mentioned about this earlier.
    Giving and repayment of loan should be done via bank and not via cash mode [S.269SS , read with S.269T]
     
    Vivek Rusia likes this.
  4. Vivek Rusia

    Vivek Rusia New Member

    OK Dear ZED, The loan agreement on a plain A4 size paper is sufficient? If not, then please advise the right way.
     
  5. ZED

    ZED Well-Known Member

    Yes, make sure sure it is executed properly as all other agreements, are.


    [This is something which Shah Rukh Khan also did when he gave money to her wife on loan from which she purchased Jewellery.Shah Rukh Khan V CIT ITAT MUM (2014) ]
     
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