vikas gupta (c.a final....) (714 Points)
25 October 20111. What is clubbing of income?why is it done for what purpose?does it save tax?
2. I have REVISED 1 time strategic management from 22 october to 23 october....now my xam is on 16 november pcc...if revise on 10 november and leave it untouched till 9 november ....will there be any problem?
Shah Tarun
(Student)
(800 Points)
Replied 25 October 2011
vikas gupta
(c.a final....)
(714 Points)
Replied 25 October 2011
But please tell me why clubbing is done?for saving tax?
Kunal
(Risk Analyst)
(299 Points)
Replied 25 October 2011
Santosh Ramaseshan
(CA, CS )
(110 Points)
Replied 26 October 2011
Clubbing provision in IT act is inserted to avoid tax evasion/avoidance
For eg. a person transfers some shares to his spouse (Income below the taxable limit) and sells it, the gain prima facie is taxable in the hands of his spouse. But by the virtue of the clubbing provision, it can be taxed in the hands of the person who transferred the shares to his spouse.
This is simple example, the act gives various other provisions, where income of Minor, unmarried daughter etc. can be clubbed.
Shah Tarun
(Student)
(800 Points)
Replied 26 October 2011
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