Tax Final Queries.. Pl help

For ur 1st Q of minor's income...

Its not possible to tax the minor.. So the answer here is of choice,.. i.e in whose hands u want to club... I think it will be female ofcoarse (reason being tax slab rate).... there u can avail more exemption....

Moreover, for ur 4th Q of interest rates... Dont worry, they will be provided in exams.. As such, til now they have been provided...

Dear Priyanka,

For the first question i agree with dhiraj...The same will not be taxed on the minor...than it is left with choice, can be taxed in the hands of either of the parent.

Dear Priyanka,

I am not sure abt my opinion on the second question, but in my opinion...

agracultural income will not be included, in y's income ones it has been taken into consideration for x's income and for the purpose of salary calculation

The Rate of interest as regard question 4, will be given along with the question...no need to remember

your question 5 is not clear....so no comments.

And property off course includes both movable and immovable property..

Hey.. vivek..

In the same book ... prop has been defined to incl - immovable , shares , securities , archeoligal stuff ...

theres is nothing to include that movable prop are also covered !! also the above is a " means " definition .... so the query !

It was decided in some case law that the minors income shall not be clubbed with that of parents. I will confirm the case name and the rates at which the minor is liable for tax

Originally posted by : Priyanka
	Dear all, Hav these doubts... pl help out.. thx in advance Clubbing 1. In case of clubbing of income of the minor with the income of the parents , if both parents have equal income , explanation 1 to Sec 64 (1) fails , so will the income not b clubbed and taxed in the hands of the minor ? 2. In case of agriculural inc Case : X transfers the property 2 Y in a case of recoverable transfer . Income normally in such cases is to be clubbed with the transferor . Here will it will taken to assess the rates applicable to tax Mr. X s income ?  What is Mr. Y s position .. is agricultural income to be taken for rate purposes ?? Salary 3. Jus went thro' TN Manoharan s Salary chap, Medical re-imbursement upto Rs.15,000 is not taxable right ? here an eg of Rs.17,500 -- the full amount has been considered for taxable income ... pl opine ! 4. Also r v supposed to learn the rates of interest applicable for interest free loan perq and indexation nos by heart ? Income from other sources 5. In case of  Section56 (2) .. The aggregate amount of Rs.50,000 .. is it separately for Money gift , immovable properly and movable properly for a year ...?? or is it per transaction wise for each type ? In  TN Manoharan s ... an immovable prop transaction hs been treated transaction wise lik... an asset for Rs.60,000 - taxable fully.. and again in the same year and asset for Rs.40,000 - says its not taxable ... !! isnt it by aggregate taxable as Rs.100,000 ? 6. Also can some one define " property " here... does it emcompass every thing that is movable and immovable ??? TC !!

1. Agree with Dhiraj

2. The transfer of property to minor child also attracts clubbing of the income from such a property, under sec 64.

Revocable transfer attracts Sec 61.

Agricultural income of minor is also clubbed for aggregation purpose as per the decision in Suresh Chand Talera v. Union of India [2006] 152 Taxman 348 (MP).

3. If the amount of medical allowance is not a perquisite if it is below Rs.15000 in a year, it is not a perquisite. However, if it exceeds 15000, the entire amount is a perquisite. Hence 17500 is entirely a perk

4. As per my info, yes, u gotta learn it. Keep it for last.

5. Agree with TN Manoharan (usually), insufficient details... see if anything else like relative to be considered.

6. Property means   "immovable property being land or building or both, shares and securities, jewellery, archaeological collections, drawings, paintings, sculptures, any work of art"

Other assets are not "property"

Hey..

then if u can clarify ... then what movable property are we taking about in the the amentment ..i.e Sec 56 (2).. ??? that is to say if "prop" excl immovabl property ???

n queries based on what ans i hav got...

Q 2 .. was is Mr.Y s taxability determined at rates including the agriculural inc ? ( as inc to be considered in transferee s hands before clubbing ) .. i understand the same will be for sure treated for tax puposes in Mr. X s hands from the above..!!

Q 5. This pro has nothing to do with relatives .... so really dont understand.. ???  the illustrations are mutually excl in that book!!! as regards 56(2) !!!