Kashish Gupta (B.com (H) , ACA) (368 Points)
03 September 2013Hi Friends,
I have a query regarding taxation of income.
A person has Salary Income of Rs.6 Lacs and in order to avoid tax burden he started Business in the name of his Minor Child and show the Loss of Rs. 4 Lacs from that business. He filed NIL Return after clubbing income of Minor Child into his income.
My question is " Is it the right way to avoid tax or not " ?
Thanks.
Pratik CA Final
(Article Assitant)
(102 Points)
Replied 03 September 2013
Business income cannot be set off against income from salaries.It is not possible to set off the business loss against income from salaries u/s 71/72.
Kashish Gupta
(B.com (H) , ACA)
(368 Points)
Replied 03 September 2013
If he shows loss from other sources.
a) in the name of minor
b) in his name
then what would be the treatment?
Pratik CA Final
(Article Assitant)
(102 Points)
Replied 03 September 2013
Then in that case he might have to substantiate the same.
In case of minor he might be further ask to show the reason of the same and if the same if not verified then will lead to penalty ,etc.
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
CAclubindia
