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 suffering from any disability and such disability is specified in … [Read more...] about Tax provisions related to your minor child
clubbing
How your minor Childs income is taxable in India – Section 64 (1A) of IT Act, 1961
Income of a minor child is clubbed in the hands of parent. However, if it arise from manual work or from any activity involving his talent or specialized knowledge and experience and such amount generated by a minor child who is suffering from any disability of the nature specified in section 80U then it will not be included in the hands of his parents. If income of minor … [Read more...] about How your minor Childs income is taxable in India – Section 64 (1A) of IT Act, 1961
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 from section 60 to … [Read more...] about What is Clubbing in Income tax – Section 64 of IT Act