Tax provisions related to your minor child

Minor’s income will get clubbed in the hand of either of parents whose income is higher before clubbing provision is applied. If such minor generates it because of his skills, talent or specialized knowledge and experience then it will not be clubbed in the hands of parent. IT act also states, if the minor is … Read More » "Tax provisions related to your minor child"

What is Clubbing in Income tax – Section 64 of IT Act

Taxpayers having huge taxable income are sifting a portion of their income it another persons who have lower taxable income to reduce tax liability. This practice is achieved either by transferring profit generating assets or by sifting revenue generating capacity to certain family members. To tackle this type of issues, IT department has clubbing provisions … Read More » "What is Clubbing in Income tax – Section 64 of IT Act"