20 June 2008
X and Y are two brothers both getting salary income after deduction of TDS. Y transfers his income of Rs 30000 to his bro X's bank a/c. X invest this sum in mutual funds and also give as a loan. Is this transfer of money from X to Y valid? Who is liable to tax?
Transfer of income here has no Significance for Taxability....
Both are taxable for their respective income from salary...It doesn't matter for what purpose that income is spent,except in case of some approved savings where thay claim deduction..
CAclubindia
