| Question And Answer | |
|---|---|
| Subject: | Gold metal on lease to father propertieyship firm |
| Category: | Income-Tax |
| Querist: | Kollipara sundaraiah |
| Answered by: | Law Intern |
| Tags: | gold leasing |
| Date: | June 21, 2025 |
Sir,
If a person leases gold to assessee’s father’s jewellery firm and gets interest on it. Is it allowed in income tax act to lease gold instead of cash to private firm
Leasing gold to your father’s jewelry firm and earning interest is permissible under the Income Tax Act, provided the transaction is genuine, documented, and at arm’s length. The interest (whether in gold or cash) is taxable as “Income from Other Sources”.
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