interest income by giving loan to wife - business income or not ?

Share This Thread
  1. rl334709

    rl334709 New Member

    Giving loan of an amount , to wife, for making F.D. in her own name, and getting that loan back with interest, - Will this interest from wife, be called as business income ? ( business of landing money for generation of interest income ? )

    Will the husband have to file his Income Tax return in ITR 4 OR 4S , only because of having such interest income from wife ? He does not have any other business income.
    He is having only pension income and interest income from his bank f.d. and his savings bank A/Cs.
    He generally files his return in ITR -1.
  2. Anand Jain

    Anand Jain Member

    The husband can either show this as Business Income or as Interest Income.

    If he shows this as Business Income, ITR 4/4S would be used.

    If he shows this as Interest Income, this can be disclosed in ITR 1 itself under head Income from other sources.
  3. Anand Jain

    Anand Jain Member

    If this is a one-off case, it wont be treated as business income.

    If the husband gives loans to many people during the year - then it would be considered as business income
  4. rl334709

    rl334709 New Member

    Thank you for ur advice.
Draft saved Draft deleted
Similar Threads Forum Date
Interest Earned on Fixed Deposit by Major Daughter on Income denoted by Father Income Tax Nov 3, 2017
Income Tax on Interest on 54EC Capital Gains bonds Income Tax Jul 22, 2017
Home Loan Interest Rebate in Income Tax Income Tax Jul 13, 2017
Taxation of interest income from post office savings bank Income Tax Jan 22, 2017
home loan interest deduction from taxable income Income Tax Jan 16, 2017