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Clubbing of minor income

CA.AZAD JAIN (CA) (201 Points)

07 December 2017

Initially, when income accrued/arise in case of a Minor was clubbed in the hands of mother whereas income of father was greater and in subsequent years too the same was continued to be clubbed in the hands of mother only.

Now, the assessing officer wants to club the minor income in the hands of father.

Whether he can do so or not?

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 07 December 2017

Yes, he has right to rectify the mistake..........

Damisetty Saketh (student) (108 Points)
Replied 07 December 2017

Minors Income is to be clubbed only with those parent whose income is higher.Therefore,it has to clubbed with Father.

Pardeep Garg (CA-Final Student) (801 Points)
Replied 08 December 2017

yes, A.O. can

Prajjwal Kaushik (Finance Professional) (6216 Points)
Replied 13 December 2017

As far as I understand, as per the explanation to Section 64(1A), the income of the minor child shall be included:

(a) where the marriage of his parents subsists, in the income of that parent whose total income (excluding the income includible under this sub-section) is greater; or

(b) where the marriage of his parents does not subsist, in the income of that parent who maintains the minor child in the previous year.

Since in the instant case aforementioned clause (a) will apply and thus, the income of minor child shall be clubbed in the income of the parent having higher income i.e. Father.

Also, Assessing Officer has a right to make rectifications in the ITR of mother and father as the current treatment is not in line with tax provisions.