Husband 55yr , no source of income,
only 3cr in savings acc and FDs ,
3 land plots worth 2cr.
wife 50yr , home maker, no source of income
To build capital for my wife 50yr
I have 3cr in account , I loan my wife 2cr @ 4% , she puts it in fd at 7%
I invest remaining 90 Lkh in Arbitrage fund for 3+ years , rest 10lkh for expenses (enough for 2 year expense)
***will the the 4% be picked up for scrutiny . loaning to my wife at 4-5% interest justifiable
Intra-family loan interest scrutiny in income tax: husband-to-wife lending at lower rate for fixed deposit investment raises tax questions. Income-tax question concerning a proposed intra-family loan by a husband to his wife at 4% interest, where the wife would place the borrowed funds in fixed deposits at 7% interest. The central issue raised is whether the 4% interest rate on the loan to the wife may attract scrutiny and whether lending to a spouse at 4% to 5% interest would be justifiable for tax purposes. (AI Summary)
TaxTMI 
TaxTMI 
