clubbing query.!!!!!!!!!

Dear Ashish,

Income Tax

Rs. 25 Lakhs - Taxable in the hands of Minor

Rs. 2 Lac - Rental Income shall be clubbed in the hands of parent. (Exemption of Rs. 1,500 can be claimed)

Wealth tax

House - Taxable in the hands of Minor but again exemption in respect of one House can be claimed

Car - Clubbed with the parent.

Dear Amir,

Pls tell Y the income of Rs. 2 lacs is clubbed with parents when the source of this income is deemed to be that of the minor himself.!?????

Dear Ashish,

Simple brother, Rental income does not fall in any of the proviso to Sec 64(1A) -

Sec 64[(1A) In computing the total income of any individual, there shall be included all such income as arises or accrues to his minor child ⁵⁶[, not being a minor child suffering from any disability of the nature specified in section 80U] :

Provided that nothing contained in this sub-section shall apply in respect of such income as arises or accrues to the minor child on account of any—

          (a)  manual work done by him ; or

          (b)  activity involving application of his skill, talent or specialised know-ledge and experience.

amir,

thanks for the useful explanation..!!!!!!!!