CLUBBING OF INCOME
This query is : Resolved
26 November 2009
if Mr.x is employed with wipro P.LTD. and earns a salary of Rs.321000/- p.a. as an Accountant and his wife Mrs.x employed with Accenture P.LTD. at a salary of Rs. 381000/- p.a.
BEFORE MARIAGE AND STILL FILING THEIR I.RETURN ON INDIVIDUAL BASIS.(SEPARATE RETURN)
IS THEIR INCOME ATTRACTED WITH THE CLUBBING SECTIONS.
SHOULD THEY CLUB THEIR INCOME AND FILE THE RETURN PLZ SUGGEST IF POSSIBLE WITH SECTIONS IN DETAIL.
THANK YOU
BEFORE MARIAGE AND STILL FILING THEIR I.RETURN ON INDIVIDUAL BASIS.(SEPARATE RETURN)
IS THEIR INCOME ATTRACTED WITH THE CLUBBING SECTIONS.
SHOULD THEY CLUB THEIR INCOME AND FILE THE RETURN PLZ SUGGEST IF POSSIBLE WITH SECTIONS IN DETAIL.
THANK YOU
26 November 2009
There is no provision for clubbing of salary income of husband and wife. Mr. X and Mrs. X should file their return separately.
26 November 2009
no clubbing provision atterects in above sistitution.
26 November 2009
Clubbing provisions are no where attracted in above scenario.
26 November 2009
agree
26 November 2009
thank you all can one plz tell me in what situation clubbing sections are attracted
26 November 2009
John. If Mr.X & Mrs.X both work for the same entity following is what happens:-
If either spouse individually or along with relatives own substantial interest (20% share) in the entity, then the salary, commission, fees or any other form of remuneration of both spouses are clubbed together in the hands of the spouse whose income is greater before taking into account these specific incomes from that entity. Refer to Explanation 1 & 2 read with Section 64 (ii).
However, if both spouses have the required qualifications for the job they are doing, then this provision will not be attracted. This usually happens in family run private limited companies where salaries may be paid to spouses etc. without them possessing requisite qualifications.
If either spouse individually or along with relatives own substantial interest (20% share) in the entity, then the salary, commission, fees or any other form of remuneration of both spouses are clubbed together in the hands of the spouse whose income is greater before taking into account these specific incomes from that entity. Refer to Explanation 1 & 2 read with Section 64 (ii).
However, if both spouses have the required qualifications for the job they are doing, then this provision will not be attracted. This usually happens in family run private limited companies where salaries may be paid to spouses etc. without them possessing requisite qualifications.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Where to show the RCM on Rent paid to unregistered landlord
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- Applicability
- Is Aadhar PAN linking required for opening bank account?
- Legal heir raised refund , but refund issued to the closed account of deceased.
- TDS NUMBER SURRENDER
- Gst Sales of FY 2023-24
- Offsetting interest income against derivative trading losses
- GSTR-3B - Do I file nil when there is no sale but I've bought raw materials
- RCM - commercial rent paid to URP under GST
- Doubt in Form AOC 4
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
- Regarding einvoice taken on nil rated sales
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
