Scribd
Upload
46 views1 page

DT - Clubbing

club

Uploaded by

deopuragst
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
46 views1 page

DT - Clubbing

club

Uploaded by

deopuragst
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

CLUBBING OF INCOME

Section
62
Transfer of Income ? Without Income Taxable to ? Transferor
Section 60 transfer of asset T/F is Revoked Taxable to Transferee
After death of beneficiary
Section 61 Revocable Transfer Income Taxable to ? Transferor Exception
Taxable to Transferor

Transferor received direct/ indirect income during lifetime ? Revocable T/f


Section 64 (1A) - Income of Minor Child
1. Income of minor child ? Taxable ? Parent whose income is
more Section 64(1)(ii) - Income from spouse from
Exception If Income due to :- concern assessee has substantial interest
2. Clubbed with Parent ? Exemption u/s 10 (32) of Rs. 1500 per 1. Skill & talent 1. Income from such concern ? Taxable to assessee
child 2. Manual Work
3. Disability 2. Substantial Interest ? Company ? share holding 20% or
3. Marriage not subsist ? Income taxable ? Who maintains the more
child Firm/AOP/ BOI ? 20% or more PSR
`4. Club with other parent can be done by Assessing Officer (AO) Exception 3. Husband & wife both ? Substantial Interest
only ?
Spouse has technical or
professional qualification Taxable to whose income is more
5. Child includes a step and an adopted child of that Individual.
?
Taxable to spouse 4. Once clubbed with either spouse ? can't change
6. It does not exclude minor married daughter, it will be clubbed. ?
unless AO is satisfied

Section 64(1)(iv) - Asset transfer to Son's Section 64(1)(vii)/(viii) - Asset t/f to any
Wife person for benefit of spouse / Son's wife
1. Asset T/f ? without / Inadequate Taxable of income to transferor NOTES
Consideration
? 1. Clubbing also applies in case of loss.
Income Taxable to Transferor
2. Asset T/f ? converted into other form
? ?
Income from such asset ? clubbed
2. Relationship of in laws exist both
? 3.Asset t/f ? Sold by transferee ? Capital gain ?
at the time of t/f & at the time of income Clubbed
Section 64(2) - Asset t/f to HUF 4. Cross gifts ? Income on lower amount ? Clubbed
1. Ind. t/f asset to his HUF? Taxable to
Transferor 5. Asset t/f to spouse / son's wife ? then invested in
business
2. After partition of HUF ?
Section Income clubbed
65 ?
Income of his & his spouse ?
? Income from Business X gifted by assessee
Taxable to Transferor ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
(Opening Capital) Capital of business on 1st day
Tax not paid by ?
? Clubbing applicable on gifted money only
Person with income is clubbed ?
? Included in opening capital
Transferor
? 6. Clubbing not applicable to Second Generation of
Then , Notice of demand ? Transferee ? Liable to pay that tax levied on transferor income
Similar Provision ? is deemed ownership U/s 27

You might also like