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Cluubing of income

29 November 2020

my wife transfer reguler monthly amount to my son account from last three years and he invest in mutual fund

now after redemption i have to club income with my wife income
can i ?

does he transfer full amount plus profit to my wife account, which he received from my wife?

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8 Replies

ATUL Y (574 Points)
Replied 29 November 2020

Basically child income club in parent income which taxable income is more

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Aman Verma (209 Points)
Replied 29 November 2020

As per sec 64(1A) if a child is minor then th income he receives will be clubbed in the hands of the parent who's income is more , therefore if your income exceeds than your wife the amount will be clubbed in your hand and if the child is not minor the amount will be taxed in his hands itself

NITIN DALSANIA (84 Points)
Replied 29 November 2020

Clear sir, but son is major and student
so can i club with wife income or file under itself
or both can i do

Aman Verma (209 Points)
Replied 29 November 2020

If son is a major and the redemption amount exceed 2.5L you have to file your son ITR and show that in that , you cant club with yours or your wifes income

NITIN DALSANIA (84 Points)
Replied 29 November 2020

Sir, total income not exceed 250000

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CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 29 November 2020

then no clubbing of income shall apply as per it act.

if he total income does not exceed the basic tax slab then no need to file itr.

ayusmita (Tax consultant) (5885 Points)
Replied 29 November 2020

As you say your son investment in mutual fund an he is major and it's not taxable then also you have to file itr return in your son name as he invest in mutual fund others wise you don't have to