Clubbing of income

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MADHVENDRA NARAYAN (Querist)
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15 October 2011 interest on capital receive by a minor from a firm Rs 24000.the capital was invested out of the minors own fund Rs 150000 how much amt. clubbed under hand of parrent after allowing Rs 1500 ded. u\s 10(32).

CA RICHA BADALIA

CA RICHA BADALIA (Expert)
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15 October 2011 Here the clubbing provision will be applied and Rs.22500 will be clubbed in the hands of parent whose total income is higher( excluding this income)Provided this income is not earned by minor by applying his own skill, talent or specialised knowledge

MADHVENDRA NARAYAN

MADHVENDRA NARAYAN (Querist)
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15 October 2011 m satisfied with ur ans. bt in practical Qs. book of ajay jain treated dis as
Rs 150000*12% =18000-sec10(32) RS 1500=Rs16500

CA RICHA BADALIA

CA RICHA BADALIA (Expert)
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15 October 2011 The answer given in the book is correct as max of 12% interest is allowed as deduction to partnership firm and that amount only is chargeable to tax in the hand of partner.

MADHVENDRA NARAYAN

MADHVENDRA NARAYAN (Querist)
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15 October 2011 Thank you so much for your support dis is my first quarry got completely solved, Plz consider my next Q, Amit buy a House property for Rs 35000 from his freind which Market value is Rs 600000 ,how much amt. & under which head IOS or Cap gain the Amt. is taxable

CA RICHA BADALIA

CA RICHA BADALIA (Expert)
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15 October 2011 Finance Act 2010 has retrospectively omitted Sec 56(2)(vii)(b)(ii) and therefore purchase of immovable property for a lower price would not be taxable in hands of Amit.

MADHVENDRA NARAYAN

MADHVENDRA NARAYAN (Querist)
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15 October 2011 Thanks a lot richa je

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