Clubbing query

IPCC 613 views 2 replies

A proprietary business started by Smt Rani in 2006. As on 1.4.07 , capital of her business was Rs 300,000.Her husband gifted her Rs 200000 on 14.4.07;which Smt Rani invested in her business on the same date.For FY 2007-08,profits of the business was 150,000.Will the profits be clubbed to her husband. If yes how much.(Nov 2004 question)Plz answer for the prevalent laws applicable to PCC Nov09.

--> Is this contention correct. Sb told me that because of following reason; it wont be clubbed:"
   Because for clubbing the profit of PROPRIETORSHIP BUSINESS, the capital invested by Smt Rani; must be invested in business on first day of PY ie 1.4.07 and here it is 14.4.07.

Replies (2)

yes the profits be clubbed.

yes all amendments applicable to nov o9

 Profits cannot be clubbed because amount was not invested on 1/04/07.(SECTION 64(1)(iv)) 


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