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"
Is there any deduction available for clubbing of my wife’s income in my hand? No, clubbing provision does not provide any kind of deduction or exemption for getting it clubbed in your hand. My wife has a LLB degree and before my marriage she was working as a legal advisor to a company. After my … Read More » "FAQs on Clubbing – As per 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 … Read More » "How your minor Childs income is taxable in India – Section 64 (1A) of IT Act, 1961"
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"