Professional Documents
Culture Documents
income
Transferor- The person who transfers any of his belongings, specifically his
assets/income to another person is known as Transferor.
Minor- A person who is below the age at which he or she legally becomes an
adult. In India at present a person becomes adult at the age of 18 years.
Introduction
Condition – 3 The income from the asset is transferred to any person under
a settlement, trust, covenant, agreement or arrangement.
Situation – 5 If the transferor has any right to reassume power over the asset (
or income there from ) directly or indirectly, wholly or partly .
Conclusions of above situations
4. The above rule is applicable even if the power to revoke has not been exercised so
far.
When an individual is assessable in respect of
remuneration of spouse [Sec. 64(1)(ii)]
Condition :- Section 64(1)(ii) is applicable if the following conditions
are satisfied-
. Condition 1 The taxpayer is individual.
• Other Points –
1) Salary – How computed
2) Concern
3) Substantial Interest
4) Relatives
5) When both husband and wife have substantial interest
I) Both husband and wife have a substantial interest in a concern
II) Both are in receipt of the remuneration from such concern
III) Remuneration is received without any technical and professional
qualification.
IV) Remuneration will be included in the total income of husband or wife
whose total income, excluding such remuneration, is grater.
When an individual is assessable in respect of
income from assets transferred to spouse [Sec.(1)(iv)]
1. Income of minor child suffering from any disability of the nature specified
under sec. 80U.
• Recovery of tax :-
Step 1 :- First compute the income in the hands of the actual recipient under
the relevant head of income as if the actual recipient of income is liable to
pay tax.
Cont’d….
Step 2 :-After computing the income under the relevant head of income in the
hands of actual recipient, it will be clubbed under the same head of
income in the hands of other person.
Step 3 :- Gross total income of the person in whose hands the income is
clubbed shall be calculated as if it is his own income. Provisions of set off
& carry forward of losses are applicable as are applicable in any other
case.
Step 4 :- Deductions under sec. 80C to 80U will be given to the person in
whose hands income is clubbed within the overall ceiling provided in the
sections. No separate deduction is available to actual recipient of income.
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