CLUBBING OF INCOME
This query is : Resolved
26 November 2009
if Mr.x is employed with wipro P.LTD. and earns a salary of Rs.321000/- p.a. as an Accountant and his wife Mrs.x employed with Accenture P.LTD. at a salary of Rs. 381000/- p.a.
BEFORE MARIAGE AND STILL FILING THEIR I.RETURN ON INDIVIDUAL BASIS.(SEPARATE RETURN)
IS THEIR INCOME ATTRACTED WITH THE CLUBBING SECTIONS.
SHOULD THEY CLUB THEIR INCOME AND FILE THE RETURN PLZ SUGGEST IF POSSIBLE WITH SECTIONS IN DETAIL.
THANK YOU
BEFORE MARIAGE AND STILL FILING THEIR I.RETURN ON INDIVIDUAL BASIS.(SEPARATE RETURN)
IS THEIR INCOME ATTRACTED WITH THE CLUBBING SECTIONS.
SHOULD THEY CLUB THEIR INCOME AND FILE THE RETURN PLZ SUGGEST IF POSSIBLE WITH SECTIONS IN DETAIL.
THANK YOU
26 November 2009
There is no provision for clubbing of salary income of husband and wife. Mr. X and Mrs. X should file their return separately.
CA Ravi Sisodia
(Expert)
26 November 2009
no clubbing provision atterects in above sistitution.
CA. Rishabh Mittal
(Expert)
26 November 2009
Clubbing provisions are no where attracted in above scenario.
26 November 2009
agree
26 November 2009
thank you all can one plz tell me in what situation clubbing sections are attracted
26 November 2009
John. If Mr.X & Mrs.X both work for the same entity following is what happens:-
If either spouse individually or along with relatives own substantial interest (20% share) in the entity, then the salary, commission, fees or any other form of remuneration of both spouses are clubbed together in the hands of the spouse whose income is greater before taking into account these specific incomes from that entity. Refer to Explanation 1 & 2 read with Section 64 (ii).
However, if both spouses have the required qualifications for the job they are doing, then this provision will not be attracted. This usually happens in family run private limited companies where salaries may be paid to spouses etc. without them possessing requisite qualifications.
If either spouse individually or along with relatives own substantial interest (20% share) in the entity, then the salary, commission, fees or any other form of remuneration of both spouses are clubbed together in the hands of the spouse whose income is greater before taking into account these specific incomes from that entity. Refer to Explanation 1 & 2 read with Section 64 (ii).
However, if both spouses have the required qualifications for the job they are doing, then this provision will not be attracted. This usually happens in family run private limited companies where salaries may be paid to spouses etc. without them possessing requisite qualifications.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst credit note by supplier
- Reward for festival
- 18% Rent a cab
- Movement of goods by packers and movers - type of sale - Reg.
- Missed uploading GST Invoice
- ARCA LOGIN
- Accounting Treatment of Civil work to install PORTA Cabin for office use
- TDS Return Statement Status
- Closer of business and itc of capital goods
- Appointment of Auditor By Form ADT-1
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
- ITC not to be taken in accounts & GSTR-3B
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
