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Clubing provision required answer

If mr.x transfer 10% debentures to his wife mrs.y of rs.500000 and she got intrest rs.50000 which is invested in z Ltd inthe name of her minor child rakesh and he get income  rs.10000 on such investment.now as per provision 10000 is income on income so not clubed inthe hands of mr.x but my qution is  rakesh is miror get rs.10000 which is assessble inthe hands of who's income is bigger of his parents whether my thinking is right or wrong? to  Mrs.y rs.10000 is income on income clubbing provisions not attract.but to rakesh it is not income on income


pavan kumar

pavan kumar

CA Inter

2K+

01-May-20 17:00

23

Answers (1)

Sec 64(1)(iv) all such income as arises directly or indirectly to the spouse of such individual from assets transferred directly or indirectly to the spouse by such individual otherwise than for adequate consideration - Rs 50000 gets clubbed Sec 64(1A) In computing the total income of any individual, there shall be included all such income as arises or accrues to his minor child, not being a minor child suffering from any disability of the nature specified in section 80U - Rs.10,000 shall be clubbed in income of Mr.X if his income is more than Mrs.X


sudha reddy

sudha reddy

Moderator

01-May-20 17:35