AKSHAY (CA STUDENT) (35 Points)
13 August 2011whether income of disabled son is to be clubbed in the income of mother or father :
eg: father gifts disabled son 1 house property having income of rs100000 and also one bank fd with an interest of rs 100000 .how much income is to be clubbed inthe income of father and what is the tax liability of diasbled son.?
vishnupriya
(CA Final)
(1418 Points)
Replied 13 August 2011
As per Sec 64(1A) of the IT Act,1961, if a minor child suffering from any disability of the nature specified U/s80U, the income of such child shall not be included in the hands of the parent but shall be assessed in the hands of child himself.
If the disability is not the one which is specified in sec 80U, then the income shall be clubbed in the parent's income whose income is higher after giving the exemption of Rs.1500/-.
You have to verify Sec 60 also as it says, when income alone is transferred without transfer of the asset giving rise to such income, it is deemed to be income of the transferor. It does not matter whether such transfer is revocable or irrevocable.
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