Hello, I am a doctor, I took a professional loan of about 15 lakhs and transferred it to my wife's account as the property my wife was buying was supposed to be purchased by her name and that too (because of some circumstances) money was supposed to be transferred through her own bank account to the seller's account. Hence i transferred the money to her account and she transferred it to Seller's bank account as a payment towards property purchase. Now i am confused if there is any way we can show that the money went through my wife's account is actually loan amount that i took? Or will my wife has to pay tax for the entire money i transferred to her bank? kindly give us some suggestions on tax savings in this matter. thank you
Hi
Your wife need not pay any taxes on receipt of such funds of 15 lacs from you.
However, in view of the income tax act, you shall be a co-owner in the property to the extent of funds provided by you. Consequently, any future incomes arising out of the property shall be proportionately taxable to you and your wife.
Thank you for your answer ma'am, What documents should i provide to prove the money transferred to my wife's account(and hence for property purchase) is the loan amount? Is it sufficient to mention while filing for her ITR, my name and provide the details of loan taken by me and proof of relationship ?
Dear Sir,
Hope you are doing well !!
No, your wife need not to pay any taxes on said transfer.
However, you will be treated as co owner of property (based on sharing) and liable for tax on income earned out of the property.
I don't think you would be required to worry so much as of now while filing return.
The first option would be if possible transfer the loan to wife's account i.e. in the loan taken by you change your name to your wife's name and show it as loan accepted by your wife to make things simple or
It would be great if you could show the amount as loan given to wife.
Even if you show it as gift to wife there would be no tax on such matters.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
Hi,
- While filing ITR of wife, show the amount of Rs.15 lacs under the schedule Exempt Income otherwise in future she will get notice to reply on compliance portal as many people are getting today for entering in to high value transactions and not filed ITR.
Thanks
Taxes are payable on income earned. Merely taking a loan is not income in itself and hence she is not liable for tax.
The entries in bank account would show the amount received as loan and thereafter these money are paid to wife and then she to house owner. The bank entries, loan agrement with bank would help to justify the position. There are no documents to be filed for filing return. The documents can help if any enquiry comes for her.
Dear Sir,
You can make a loan agreement with your wife for record purpose.
However, documents are not required for tax filing.
You don't need to provide any documents while return filing.
However, for documentation purpose, you can make a mutual written agreement stating intent of such transaction.