Clubbing of income u/s 64(1A)

Dear Kapil Sir,

Completely agree with Uday Bhai.

Eg -                         GAV = 1,05,000

Less :Municipal Taxes =  5,000

                                 NAV = 1,00,00

Less :30% S. Deduction = 30,000

Less:Interest on Laon =  Nil

     Annual Value                70,000

Now Rs. 1,500 will be deducted from this 70,000 and Rs. 68,500 shall be included in the Total Income of the parent.             

Lets suppose in the above example Interest on loan was

a) 69,000

b) 72,000,

then Annual Income will be in a) Rs. 1000 (b) (2,000)

Now exemption u/s 10(32) will be in case of

a) Rs. 1,000 (as exemption can only be to the extent of Positive Income)

b) Nil

Thanx Amir & Uday