Financial Daily from THE HINDU group of publications
Sunday, Oct 03, 2004
Investment World
Features
Stocks
Port Info
Archives

Group Sites

 Investment World - Taxation
Columns - Tax Talk


You can repay your wife without interest

T. Banusekar

I HAVE taken a loan from my wife. Both my wife and I are income-tax assessees. I used the money borrowed to construct a residential house.

I now propose to sell some of the shares held by me and repay my wife without interest for the borrowing.

Is this permissible under the income-tax Act?

Ranganathan

Reply

There is nothing wrong in your taking a interest free loan from your wife and repaying the same to her without interest. In the hands of your wife, it will not be permissible to tax notional income since what can be taxed under the law is only real income.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Investment quiz

IOB's e-Cash Home
A new cue for your debt portfolio
Mutual funds in July-September: Skillfully navigating a stormy market
Delisting of stocks — Investor interest must be paramount
A nation of incorrigible savers
Debt funds: Down but not out
Sundaram Select Mid-Cap Fund: Hold
SBI Magnum Contra: Hold
DSP Merrill Lynch TIGER Fund
UTI Petro Fund announces 20 per cent dividend
Fund Talk
Marico: Long-term buy
Orient Abrasives: Buy
Essar Shipping: Buy
Opto Circuits: Buy
Allowances received abroad — You can have best of both worlds
You can repay your wife without interest
Positive undertone in pivotal stocks
Nifty headed for higher levels
Focus of the week
Query corner
Getz you more than what you see
Bajaj Allianz LifelongGain
Mobs in the market
Buoyant trend may continue
Settlement price
Options guide
Futures guide
Using Futures/Options
India Cements — Bind on for a year
`We have always raised the bar' _ Mr Anil Singhvi, Executive Director (Finance), Gujarat Ambuja Cements
NTPC: Invest at Rs 62
MSK Projects: Avoid
In a large portfolio there may be free-riding stocks
Shortsell

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | Home |

Copyright © 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line