CA Snehal Sukhadia (Student) (30 Points)
22 August 2010Is Section 64(1)(ii) applicable to proprietorship firm? eg If Mrs X is working in a proprietorship firm of Mr. X and Mr X pays salary to her, assuming that Mrs. X doesn't possess any technical qualification, will the salary paid to Mrs. X clubbed with the income of Mr. X
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 22 August 2010
Yes the clubbing provisions would apply here.
CA Suhasini
(job)
(22 Points)
Replied 23 August 2010
i cound'nt have the difference between EVENT and CONTINGENCY in AS -4.can any one help me?
CMA Thiru
(CA FINAL STUDENT)
(378 Points)
Replied 23 August 2010
Yes the clubbing provisions would apply here.
But Not Neccessary to be Clubbed in Mr.X,
Bcoz, Individually File The Return For Mrs.X... Save the Income of Rs.1,90,000 For the A.y-10-11,,
Am Righttttt......???
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 23 August 2010
DEAR FRIENDS,
YES CLUBBING PROVISIONS WOULD APPLY HERE.
HOWEVER AS PER SECTION 40A(7) OF THE INCOME TAX ACT, PAYMENT MADE TO RELATIVE WHO DOESN'T POSSESS REQUISITE TECHNICAL QUALIFICATION WOULD BE DISALLOWED. THUS, THERE IS TWO WAY TAXATION :
ONE BY WAY OF DISALLOWANCE OF PAYMENT MADE TO RELATIVE AS PER SEC 40A(7)
SECOND BY WAY OF CLUBBING IN HANDS OF PERSON AS PER SEC 64(1)(ii)
HOWEVER, INCOME TAX DOESN'T LEVY DOUBLE TAXATION ON ANY INCOME. THUS, ONCE THE EXPENDITURE IS DISALLOWED AS EXPENSES U/S 40A(7) OF THE INCOME TAX ACT, IT WOULD NOT ATTRACT THE PROVISION OF THE SEC 64(1)(ii).
REGARDS,
MANOJ
Shameer Kuppanath
(article assistant)
(52 Points)
Replied 28 December 2010
HI MATES......
WHETHER THERE ARE ANY PROVISIONS IN THE INCOME TAX ACT TO ADJUST TDS PAYABLE TO GOVERNMENT WITH TDS REFUND BUT NOT RECEIVED DURING THE LAST FINANCIAL YEART.!
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