Mr. X and Mrs. Y are director in a Pvt. Ltd. Co having substantial interest. Both receive monthly remuneration from the co. will the remuneration received from the co. the co. will be clubbed in the hands of the spouse having larger interest?
9 Replies
Pavan Jain S
(Chartered Accountant)
(1575 Points)
Replied 05 January 2009
If both husband and wife has substantial interest, the remuneration shall be included in the total income of that person whose total income excluding the remuneration is greater.
It should be seen that the remuneration is not attributable to the technical and professional knowledge of the director. Else, clubbing provisions is not applicable
CA Akshat
(article)
(422 Points)
Replied 05 January 2009
in ur question one thing is missing tht if both the spouse having qualification and experiance then the clubbing would not be done
i.e. the above reply given by pavan will be correct only if no partner has required qualification and experiance.
CA CS CIMA Prakash Somani
(Landmark Group)
(23502 Points)
Replied 05 January 2009
Yes Mr Pavan is correct in saying that no clubbing provisions are attrected in your case.
HARSHIT KABRA
(STUDENT)
(81 Points)
Replied 05 January 2009
As per Sec.64 it is necessary to see that whose income excluding remuneration is greater. Another important is to see that the remuneration recd. by the directors is not due to the professional and technical skills.
The clubbing provisions are not applicable if the remuneration recd. is because of professional or technical skill or knowledge.
sneha
(student)
(45 Points)
Replied 07 January 2009
Mr. & Mrs. X gives interest free loan to a firm in which their 2 son are the only partners.Will the loan given by them will be included in their wealth for wealth tax computation?
sneha
(student)
(45 Points)
Replied 07 January 2009
| Originally posted by :sneha | ||
| " | Mr. X and Mrs. Y are director in a Pvt. Ltd. Co having substantial interest. Both receive monthly remuneration from the co. will the remuneration received from the co. the co. will be clubbed in the hands of the spouse having larger interest? | " |
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