Gold lease to father properiotership firm

[Bhartesh jain]

Hello everybody

Can i give pure gold to my father gold jewellery properiotership firm on interest. I want to buy gold and earn some extra from the idle gold.i am ready to pay the income tax on the interest earned . Does income tax law allows it ? It will be valuable if somebody point to the relevant section  governing this lease agreement and the procedure to carry on this lease. My ca is not sure about this arrangement but i have read that some apps are already doing it. I dont trust app and want to give gold on lease on my own. 

Thanks in advance 

[FCA Adv amit aggarwal]

Can i give pure gold to my father gold jewellery prop. firm on interest.

1. such provisions covers as related party transactions sec 40A(2) read with arma length principles.

you can do it if lend gold on market rate + agreement on stamp paper with notary attested + pay and receipts of loan and intt via online banking channel.

 

AI Summary

Arm's length related party gold lending requires proper documentation, market-rate interest, and traceable banking records.
Gold may be lent on interest to a father's proprietary jewellery firm if the arrangement follows related party transaction principles and arm's length terms. The transaction should be documented by a written agreement on stamp paper, notarised, and supported by payment and receipt records through online banking channels. Market-rate interest, proper loan documentation, and traceable banking transactions are indicated as the compliance features for such an arrangement.