Clubbing

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28 September 2010 Are the incomes of all members of the family to be clubbed together for charging to Income-tax?

CA Sanat Pyne

CA Sanat Pyne (Expert)
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28 September 2010 No, each member of the family will be charged separately on his or her income. There are, however, certain exceptions as stated in Section 64 of the Income-tax Act. Some of these are mentioned below :-

(i) The income arising to the spouse of an individual directly or indirectly from assets transferred directly or indirectly to the spouse by such an individual otherwise than for adequate consideration or in connection with an agreement to live apart shall be included in the income of the individual.

(ii) All incomes of a minor child in excess of Rs.1500 (other than income accruing to him on account of any manual work done by him or from any activity involving application of his skill, talent or specialised knowledge and experience) shall be included in the income of that parent of the minor child whose total income excluding the minor's income is greater.

The income of Hindu Undivided Family (HUF) is taxed separately in the hands of the HUF and income received by the members from out of the income of the HUF will not be charged to tax in their hands.