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

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  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.
     
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