Clubbing provision section 64(1a)
This query is : Resolved
15 May 2012
Explanation to Section 64(1A) says as under.
Explanation.—For the purposes of this sub-section, the income of the minor child shall be included,—
(a) where the marriage of his parents subsists, in the income of that parent whose total income (excluding the income includible under this sub-section) is greater ; or
(b) where the marriage of his parents does not subsist, in the income of that parent who maintains the minor child in the previous year,
Now the question is - in point no. (a) above total income is written. Suppose income of father is 5 lakhs but that is not taxable because of exemption u/s. 10(2A). And income of mother is 1 lakh which is taxable income. Now please tell me with reference to relevant provisions of act and cases laws that with whose income the income of minor child (Rs. 80,000) shall be clubbed?
Explanation.—For the purposes of this sub-section, the income of the minor child shall be included,—
(a) where the marriage of his parents subsists, in the income of that parent whose total income (excluding the income includible under this sub-section) is greater ; or
(b) where the marriage of his parents does not subsist, in the income of that parent who maintains the minor child in the previous year,
Now the question is - in point no. (a) above total income is written. Suppose income of father is 5 lakhs but that is not taxable because of exemption u/s. 10(2A). And income of mother is 1 lakh which is taxable income. Now please tell me with reference to relevant provisions of act and cases laws that with whose income the income of minor child (Rs. 80,000) shall be clubbed?
15 May 2012
Section 64(1A) uses the words "TOTAL INCOME" and not "TAXABLE INCOME".
For the purpose of clubbing, TOTAL INCOME has to be seen and not taxable income.
Total income means incomes under all the heads of income as reduced by any exemptions.
SInce the total income of the father is NIL, the income shall be clubbed in the hands of the mother.
For the purpose of clubbing, TOTAL INCOME has to be seen and not taxable income.
Total income means incomes under all the heads of income as reduced by any exemptions.
SInce the total income of the father is NIL, the income shall be clubbed in the hands of the mother.
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15 May 2012
Agree with above Expert
Dear User,
Total Income is computed as-
Gross Total Income(GTI)- Deduction under Chapter VIA.
GTI is computed as the total of income from all the heads. Exemption U/s 10(2A) is given under Business & Profession Income. Accordigly, Income from Business & Profession becomes NIL.
Hence, Total Income of father is NIl and income of Minor will club in Mother's Income.
Dear User,
Total Income is computed as-
Gross Total Income(GTI)- Deduction under Chapter VIA.
GTI is computed as the total of income from all the heads. Exemption U/s 10(2A) is given under Business & Profession Income. Accordigly, Income from Business & Profession becomes NIL.
Hence, Total Income of father is NIl and income of Minor will club in Mother's Income.
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15 May 2012
I am also of the same opinion, but for many years then income is being clubbed with the father's income, so how can we change the basis now?
15 May 2012
Each Assessment year is separate, you can file revised return for A.Y 2011-12 only.
For earlier years, no option is available to you.
From current year(i.E A.Y 2012-130 onwards, you can file correctly.
Thanks
For earlier years, no option is available to you.
From current year(i.E A.Y 2012-130 onwards, you can file correctly.
Thanks
15 May 2012
The above explanation further reads as under.
and where any such income is once included in the total income of either parent, any such income arising in any succeeding year shall not be included in the total income of the other parent, unless the Assessing Officer is satisfied, after giving that parent an opportunity of being heard, that it is necessary so to do.]
So, how can we change the base?
and where any such income is once included in the total income of either parent, any such income arising in any succeeding year shall not be included in the total income of the other parent, unless the Assessing Officer is satisfied, after giving that parent an opportunity of being heard, that it is necessary so to do.]
So, how can we change the base?
15 May 2012
You file your return with Assessing officer correctly from current year now. It is upon assessing officer, If he is satisfied with your claim then he may allow you to do continue.
The Assessing officer will not satisfy only if you have gained from non compliance of clubbing provisions.
The Assessing officer will not satisfy only if you have gained from non compliance of clubbing provisions.
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