CCI Online Learning
What do you want to learn today?
     
CIBIL

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

CLUBBING OF INCOME

This query is : Resolved 

Hello all,
A person say Mr. X and his wife say Mrs. Y are filing regular income tax return each year. Each are having separate income of their own. They have child Mr. A who is just 3 years old. They have executed Bank Account and FD Account in the name of Mr. A and there is regular source of Interest Income generated in the name of Mr. A. Now Income generated in the name of Mr. A should shown in which form under Income Tax. Also whether the Income of Mr. A shall be clubbed with the income of their Parents? If Yes, than under whom shall it be clubbed i.e. with the Income of Mr. X or Mrs. Y.?
Please Guide..


1. Yes as per clubbing of income provisions income of minor child subject to deduction of Rs 1500/- per child should be clubbed with the income of parents.
2. it shall be clubbed with the income of that parent whose taxable income is higher before including such clubbed income.
3. If income of minor includes income derived by personal skill then clubbing provisions does not apply.

Okay got that.. Thank you so much CA Abhishek Goyal Sir.

I AGREE WITH ALL THE POINT EXCEPT POINT NO. 1 BECAUSE THE SOURCE OF INCOME IS NOT OF THE MINOR CHILD, SO DEDUCTION OF 1500 NOT TO BE CLAIMED.

Section 10(32) reads as: in the case of an assessee referred to in sub section (1A) of section 64, any income includible in his total income under that sub section, to the extent such income does not exceed one thousand five hundred rupees in respect of each minor child" the section is self explanatory, it nowhere specifies that deduction of Rs 1500 is available only if source of income belongs to minor child.


You need to be the querist or approved CAclub expert to take part in this query .


Click here to login now



Similar Resolved Queries :





Trending Tags
GST Live Class    |    x