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Income of individual to include income of spouse from a concern in which individual has substantial interest - Section 64(1)(ii) - Income Tax - Ready Reckoner - Income TaxExtract Income of individual to include income of spouse from a concern in which individual has substantial interest - Section 64(1)(ii) In the income of Individual there shall be included all such sums as arise directly or indirectly to the spouse by way of salary, commission, fees, or any form of remuneration in cash or in kind derived from a concern in which the individual has substantial interest (20% voting power/ share in profit at any time during the previous year) Exception: No clubbing if spouse possesses technical or professional qualification, and Income is attributable to his or her technical or professional knowledge and experience Note: In case both husband and wife have substantial interest and both are getting remuneration from the concern, then the remuneration will be clubbed in the hands of the individual whose income excluding such remuneration is greater. Once included in hand of either person cannot be changed in subsequent year, unless A.O. is satisfied after giving that spouse an opportunity of being heard. Condition to be satisfied: The relationship of husband and wife must subsist at the time of accrual of the income. Income other than salary, commission, fees or remuneration is not clubbed under this clause.
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