Hello
I use my wife’s account for trading F&O. She is a home-maker having no income. Now if we take a joint home loan and suppose she gains 5 lakhs in F&O. Now this will be treated as a business income out of which first 2.5 lakh is tax exempt. Question is can remaining 2.5 lakh income be settled against 2 lakh home loan interest , so that she has to pay less tax ?
Regards
R
No you cant
why not Koushik, its a business income …which clause prevents us from doing so ?
If it is a self occupied you cant and if it is rented out I think its possible
it will be rented out…any other member who is CA can clarify here ?
If it is rented out you need to declare the rental income and I think as it is a joint loan the interest should be set off proportionately in both the accounts
Firstly, don’t trade in wife’s account., she will get a tax notice asking her income source.
Second, based on clubbing of income, you have to pay the tax (not her)
please check this case with CA, if you get notice, odds are against you
Her source of income can be shown as gift from her spouse as initial capital…and gift to relative is tax free…
For clubbing they can get you…, unless you show she earned it by her skill…
Hi @Rammy1581,
If its a self-occupied property and you are opting for the old regime, the home loan interest can be claimed as a deduction. It will be treated as ‘loss from house property’ and can be adjusted against any other income including business income.
However, if new regime is being opted for, this won’t be possible.
And what about in case of rented out property ?
On let-out property, the home loan interest is allowed under both regimes. However, under the new regime, the interest amount will only be adjusted against income from house property and no other incomes.