Taxation Exam > Taxation Notes > Fast Track Quick Revision Income Tax > Clubbing of Income (Section (60 to 65))
Clubbing of Income (Section (60 to 65)) | Fast Track Quick Revision Income Tax - Taxation PDF Download
| Section 60 |
| Transfer of income without transfer of assets: Clubbed in the hands of transferrer. |
| Section 64(1)(ii), (iv) & (vii). Clubbing provisions relating to Spouse | ||||||
| S 64(1)(ii) Remuneration to Spouse |
Condition : Remuneration received by spouse shall be clubbed in the hands of that individual who has substantial interest in a concern. If both husband and wife is having substantial interest in a concern then remuneration shall be clubbed in the hands of that spouse whose total income excluding the remuneration to be clubbed is greater. |
|||||
| No clubbing: If spouse possess knowledge or experience and remuneration is attributable to such knowledge or experience then remuneration is not clubbed. | ||||||
| Substantial Interest : A person has substantial interest if he along with relatives holds atleast 20% voting power or 20% Profits in a concern | ||||||
| S 2(41). Relative : Lineal ascendant & Descendant |
Spouse/ Brother /Sister | Lineal ascendant --> |
Father Mother Grand father Grand mother |
Lineal descendant --> |
Son Daughter Grand son Grand daughter |
|
| S 64(1)(iv) Asset transferred to spouse |
Condition 1. Asset transferred by individual to his or her spouse, 2. without adequate consideration 3. then income arising to spouse from the transferred asset shall be clubbed in the hands of transferrer. |
Applicable : Clubbing provision shall be applicable only when marriage subsist both at the time of transfer of asset & at the time when income arises. Exception : Where the asset is transferred |
||||
| S 64(1) (vii) Asset transferred to for the benefit of spouse |
Condition 1. Asset transferred by individual to any person or AOP, 2. without adequate consideration 3. then income arising to spouse from the transferred asset shall be clubbed in the hands of transferrer to the extent benefit arises to spouse. |
|||||
| Section 64(1)(vi) & (viii). Clubbing provisions relating to Son’s Wife | |||
| S 64(1) (vi) Asset transferred to son’s wife. |
Condition 1. Asset transferred by individual to his or her son’s wife, 2. without adequate consideration 3. then income arising to son’s wife from the transferred asset shall be clubbed in the hands of transferrer. |
Applicable if : | |
| Father in Law & | Daughter in Law | ||
| Mother in Law & | Daughter in Law | ||
| relationship subsists both at the time of transfer of asset & at the time of accrual of income. | |||
| S 64(1) (viii) Asset transferred to for the benefit of son’s wife |
Condition 1. Asset transferred by individual to person or AOP, 2. without adequate consideration 3. then income arising to son’s wife from the transferred asset shall be clubbed in the hands of transferrer to the extent benefit arises to son’s wife. |
A transfers asset to Mrs. A. Mrs A transfer same asset to her son’s wife. The income arising to son’s wife shall be clubbed ? |
|
| Genuine Transfer |
Fraud Transfer |
||
| Mrs. A | Ms. A | ||
| Section 64(1A). Clubbing provisions relating to minor child | |||
| All income accruing to minor child shall be clubbed in the hands of that parent whose total income excluding the income of the minor child is greater. |
Exception : 1. Where the marriage of the parent do not subsist, the income of the minor child shall be clubbed in the hands of that parent who maintains the minor child in the relevant PY. 2. If once the income is included in the hands of father or mother it shall be be continued to be clubbed in the same hands unless AO do otherwise. |
S 1 0 ( 3 2 ) . Exemption upto RS. 1,500 per child exemption to that parent in whose hands income is clubbed |
|
| No clubbing from the date minor childattains majority. | |||
| No clubbing if | 1. | Minor child is suffering from any disability specified u/s 80U. All income shall not be clubbed. |
The income earned by minor child shall be taxable in their hands only. ROI shall be in their name and signed by guardian. |
| 2. | Minor child has earned any income from his own skill or talent. Only income earned through talent shall not be clubbed remaining income shall be clubbed. |
||
| Other Points. | |||
| Spouse / Son’s Wife | Minor Child | ||
| 1. | Income from transferred asset is to be clubbed. |
Correct | Correct |
| 2. | Income from income cannot be clubbed | Correct | Wrong |
| 3. | Income from accretion of asset cannot be clubbed. |
Correct | Wrong |
| 4. | All income is clubbed | No only income from the transferred asset is clubbed |
Yes all income is clubbed |
The document Clubbing of Income (Section (60 to 65)) | Fast Track Quick Revision Income Tax - Taxation is a part of the Taxation Course Fast Track Quick Revision Income Tax.
All you need of Taxation at this link: Taxation
|
21 videos|28 docs
|
FAQs on Clubbing of Income (Section (60 to 65)) - Fast Track Quick Revision Income Tax - Taxation
| 1. What is clubbing of income under Section 60 to 65 of taxation? |  |
Ans. Clubbing of income refers to the inclusion of income earned by a taxpayer in the tax return of another person. Sections 60 to 65 of the Income Tax Act outline the provisions for clubbing of income in certain situations, where income is transferred to another person with the intention of avoiding tax liability.
| 2. When does clubbing of income occur? | |
Ans. Clubbing of income occurs when a taxpayer transfers their income to another person, such as a spouse, minor child, or any other specified relative, with the intention of reducing their own tax liability. The transferred income is then added to the transferee's income and taxed accordingly.
| 3. Are there any exceptions to the clubbing of income rule? | |
Ans. Yes, there are some exceptions to the clubbing of income rule. For example, if a spouse receives income from a genuine business or profession, it will not be clubbed with the transferor's income. Similarly, if a minor child earns income from manual work or any activity involving application of skill, knowledge, or experience, it will not be clubbed.
| 4. Can clubbing of income be avoided legally? | |
Ans. Yes, clubbing of income can be avoided legally by ensuring that the transfer of income is not done with the intention of tax avoidance. It is important to establish that the transfer is genuine and not a sham transaction. Additionally, taking advantage of the exceptions and provisions provided in the Income Tax Act can help minimize the scope of clubbing of income.
| 5. What are the consequences of clubbing of income? | |
Ans. The consequences of clubbing of income include the transferred income being added to the transferee's income and taxed at their applicable income tax rates. This may result in higher tax liability for the transferee. Additionally, penalties and interest charges may be imposed if the clubbing of income is found to be a deliberate attempt to evade taxes.
Related Exams
About this Document
|
Dec 19, 2024 Last updated |
Document Description: Clubbing of Income (Section (60 to 65)) for Taxation 2024 is part of Fast Track Quick Revision Income Tax preparation.
The notes and questions for Clubbing of Income (Section (60 to 65)) have been prepared according to the Taxation exam syllabus. Information about Clubbing of Income (Section (60 to 65)) covers topics
like and Clubbing of Income (Section (60 to 65)) Example, for Taxation 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for Clubbing of Income (Section (60 to 65)).
Introduction of Clubbing of Income (Section (60 to 65)) in English is available as part of our Fast Track Quick Revision Income Tax
for Taxation & Clubbing of Income (Section (60 to 65)) in Hindi for Fast Track Quick Revision Income Tax course.
Download more important topics related with notes, lectures and mock test series for Taxation
Exam by signing up for free. Taxation: Clubbing of Income (Section (60 to 65)) | Fast Track Quick Revision Income Tax - Taxation
Description
Full syllabus notes, lecture & questions for Clubbing of Income (Section (60 to 65)) | Fast Track Quick Revision Income Tax - Taxation - Taxation | Plus excerises question with solution to help you revise complete syllabus for Fast Track Quick Revision Income Tax | Best notes, free PDF download
Information about Clubbing of Income (Section (60 to 65))
In this doc you can find the meaning of Clubbing of Income (Section (60 to 65)) defined & explained in the simplest way possible. Besides explaining types of
Clubbing of Income (Section (60 to 65)) theory, EduRev gives you an ample number of questions to practice Clubbing of Income (Section (60 to 65)) tests, examples and also practice Taxation
tests
|
Explore Courses for Taxation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Objective type Questions
,Clubbing of Income (Section (60 to 65)) | Fast Track Quick Revision Income Tax - Taxation
,Sample Paper
,MCQs
,video lectures
,Previous Year Questions with Solutions
,past year papers
,Summary
,Important questions
,study material
,Viva Questions
,mock tests for examination
,Clubbing of Income (Section (60 to 65)) | Fast Track Quick Revision Income Tax - Taxation
,practice quizzes
,Exam
,Clubbing of Income (Section (60 to 65)) | Fast Track Quick Revision Income Tax - Taxation
,Semester Notes
,Extra Questions
,ppt
,Free
,shortcuts and tricks
;
Additional Information about Clubbing of Income (Section (60 to 65)) for Taxation Preparation
Clubbing of Income (Section (60 to 65)) Free PDF Download
The Clubbing of Income (Section (60 to 65)) is an invaluable resource that delves deep into the core of the Taxation exam.
These study notes are curated by experts and cover all the essential topics and concepts, making your preparation more efficient and effective.
With the help of these notes, you can grasp complex subjects quickly, revise important points easily,
and reinforce your understanding of key concepts. The study notes are presented in a concise and easy-to-understand manner,
allowing you to optimize your learning process. Whether you're looking for best-recommended books, sample papers, study material,
or toppers' notes, this PDF has got you covered. Download the Clubbing of Income (Section (60 to 65)) now and kickstart your journey towards success in the Taxation exam.
Importance of Clubbing of Income (Section (60 to 65))
The importance of Clubbing of Income (Section (60 to 65)) cannot be overstated, especially for Taxation aspirants.
This document holds the key to success in the Taxation exam.
It offers a detailed understanding of the concept, providing invaluable insights into the topic.
By knowing the concepts well in advance, students can plan their preparation effectively.
Utilize this indispensable guide for a well-rounded preparation and achieve your desired results.
Clubbing of Income (Section (60 to 65)) Notes
Clubbing of Income (Section (60 to 65)) Notes offer in-depth insights into the specific topic to help you master it with ease.
This comprehensive document covers all aspects related to Clubbing of Income (Section (60 to 65)).
It includes detailed information about the exam syllabus, recommended books, and study materials for a well-rounded preparation.
Practice papers and question papers enable you to assess your progress effectively.
Additionally, the paper analysis provides valuable tips for tackling the exam strategically.
Access to Toppers' notes gives you an edge in understanding complex concepts.
Whether you're a beginner or aiming for advanced proficiency, Clubbing of Income (Section (60 to 65)) Notes on EduRev are your ultimate resource for success.
Clubbing of Income (Section (60 to 65)) Taxation Questions
The "Clubbing of Income (Section (60 to 65)) Taxation Questions" guide is a valuable resource for all aspiring students preparing for the
Taxation exam. It focuses on providing a wide range of practice questions to help students gauge
their understanding of the exam topics. These questions cover the entire syllabus, ensuring comprehensive preparation.
The guide includes previous years' question papers for students to familiarize themselves with the exam's format and difficulty level.
Additionally, it offers subject-specific question banks, allowing students to focus on weak areas and improve their performance.
Study Clubbing of Income (Section (60 to 65)) on the App
Students of Taxation can study Clubbing of Income (Section (60 to 65)) alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Clubbing of Income (Section (60 to 65)),
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Clubbing of Income (Section (60 to 65)) is prepared as per the latest Taxation syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup