POSTED BY May 1, 2014 12:44 pm COMMENTS (5)
ONHi all,
Advise on the following needed
I am a salaried person and my wife is a homemaker. Let’s say she has her own money of 15L and I have 5L. I want to acquire a property for 20L. Property will be registered in my name, however, registered value of the property is much less, say 10L (as per market value).
I take a short term (6 months to 1 year) loan of 15L from my wife at say 8% interest. Repayment of loan+int will be in installments over a period of say 1year. Transfer of all these money will be online between our 2 separate a/c.
My query is: Any legal/tax issues involved in the above case, especially in taking loan from my wife?
Note: The figures shown above are in Rs and only for illustration and not actual.
Thanks in advance & rgds,
Jibi
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Dear Jibi, later on if Tax authorities knock at your door, you ‘ll find it tough to prove the loan thing with out the proper documentation.
Thanks
Ashal
DearJibi, NO. A proper loan agreement on a 100 Rs. Stamp Paper is required.
Thanks
Ashal
Dear Ashal, thanks for your advice. Did not know that that kind of agreement is required. Am curious to know the implications if done other way.
Thanks in advance & regds,
Jibi
Dear Jibi, please prepare a loan agreement between you and your wife before moving ahead. The way you have proposed is OK from legal and taxation purpose.
Thanks
Ashal
Dear Ashal, thanks for your advice. Regarding agreement, a simple statement of facts about loan, amount and interest payable written in a plain paper affixing 1/- rev stamp and signed by both of us (without registering it) should be ok?
Thanks and regards,
Jibi