Clubbing of Income
Rohan (CA Finalist) (359 Points)
05 October 2009Rohan (CA Finalist) (359 Points)
05 October 2009
Manmohan ACA, CS
(Chartered Accountant )
(14243 Points)
Replied 05 October 2009
8 years STCG shall be allowed in hands of Mr. X
CA Lovenish Bansal
(JOB)
(343 Points)
Replied 05 October 2009
Rohan
(CA Finalist)
(359 Points)
Replied 05 October 2009
Isnt this a bit of tax planning that can be used by salaried individuals and Individuals who are in the highest tax bracket?
Rajeev
(www.rkmco.com)
(985 Points)
Replied 06 October 2009
Income includes loss as well rohan , so i guess the loss will be clubbed with husbands income . I am not sure if the carry forward provisions will apply , he may even be denied the benefit of carry forward , cos he is not claiming carry forward of loss in his return .
Both husband and wife will be denied carry forward of loss .
So its not tax planning , its putting the client in a mess.
Rohan
(CA Finalist)
(359 Points)
Replied 06 October 2009
Originally posted by :Rajeev | ||
" | Income includes loss as well rohan , so i guess the loss will be clubbed with husbands income . I am not sure if the carry forward provisions will apply , he may even be denied the benefit of carry forward , cos he is not claiming carry forward of loss in his return . Both husband and wife will be denied carry forward of loss . So its not tax planning , its putting the client in a mess. |
" |
Hi Rajeev,
Supreme Court in CIT Vs. P. Doraiswamy 183 ITR 559
Follows the principle laid down in Gotla ’s case(Supreme court - JC GOTLA). The Supreme Court had to consider whether the assessee was entitled to carry forward to the subsequent years not only his share but also the share of loss of his wife from a firm in which both were partners. The revenue was of the view that the clubbing provision would apply only to income and not a loss which contention was rejected by the High Court and on further appeal by the Supreme Court.
Well, as they say in most respected corporate circles...'dhan te naan'!!! :)
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