POSTED BY January 23, 2012 12:22 pm COMMENTS (6)ON
Hi Friends, I need some sugession on the following case.
A 72years old Husband wants to do some Fixed Deposits and other investments in his wife’s name (63years).
As I understand in this way eventually there will be a clubbing of income where the husband will be liable to pay the tax.
If I am not wrong husband can give loan to wife with some minimum or zero interest to avoid clubbing of income.
1. Can some one guide me how exactly this loan option can be exercised..??
2. Is there any Loan agreement to be made..???
3. Is the Loan agreement to be notarised or registered..???
4. Since there were few investment has already been done during June-Dec 2011 in wife’s name, can those be included in the loan agreement or there should be separate loan agreement for new investment and another for those investment which has already been done..??
5. Is there any specific format of loan agreement (please share)
6. What is the max amount of loan and what is the max term of the loan..??
7. Is there any alternative option available to avoid clubbing of income in this case..??