Clubbing of income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 November 2012 sir i have a query regarding clubbing of income provisions. sir suppose an individual gift Rs. 5,00,000 to his son and son gift the same amount to her mother and mother invest the money in bank FDR.Sir i want to know in whose total income the interest income on such FDR shall be included ? and why ? plz reply soon its very urgent. thanks in advance.

CA Roshan Jha

CA Roshan Jha (Expert)
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30 November 2012 I think, it shall be clubbed with the income of father. As it is an indirect transfer to spouse. However i welcome the opinion of other experts.

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Querist : Anonymous

Querist : Anonymous (Querist)

30 November 2012 sir whether transfer of assets includes money also ?

CA Pooja Agarwal

CA Pooja Agarwal (Expert)
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30 November 2012 In computing the total income of any individual, there shall be included all such income as arises directly or indirectly

To any person or association of persons from assets transferred directly or indirectly otherwise than for adequate consideration to the person or association of persons by such individual to the extent to which the income from such assets is for the immediate or deferred benefit of his or her spouse.

it includes cash also

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Querist : Anonymous

Querist : Anonymous (Querist)

30 November 2012 plz tell me what to do if the spouse (to whom money is transferred indirectly) submitted form 15G for non-tax deduction on the interest income with the bank ?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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30 November 2012 1. The income will be included in the income of the father as it is an indirect transfer.
2. TDS will not be deducted by the bank.
3. The father will show the income in his return and will have to pay tax on the same.

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