Understanding the Provisions of Clubbing of Income


Book Details
TitleUnderstanding the Provisions of Clubbing of Income
EditionApril, 2024
AuthorsRam Dutt Sharma
PublisherCommercial Law Publishers

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Explore the comprehensive guide on Understanding the Provisions of Clubbing of Income, covering legislative changes, exceptions, and conditions. This book, authored by an expert in tax law, provides insights into sections like transfer of income without asset transfer, revocable transfer of assets, income arising to spouses, minor children, and more. ISBN: 9789356037427, Edition: April, 2024, Author: Ram Dutt Sharma, Pages: 296, Publisher: Commercial Law Publishers. Now available with a 27% discount plus free shipping for a limited time.

Clubbing of Income Means1
For example:1
Its Object1
The Legislative Changes1
Scope of the Provisions of Section 642
Clubbing under relevant head3
Sections covered under Clubbing of Income3
2Transfer of Income Without Transfer of Asset6
Nature of Transaction6
Income to be clubbed in the hands of6
3Income Arising from Revocable Transfer of Assets13
Meaning of Revocable Transfer [Section 63]13
Specified Person13
Specified Scenario13
Clubbing of Income13
Exception to Section 61 [Section 62]14
4Exceptions where Clubbing Provisions are not Attracted even in Case of Revocable Transfer42
5“Transfer” and “Revocable Transfer” Defined59
6Transfer of Assets – for Benefit of Spouse Etc.72
Clubbing of share income from firm72
Spouse as Partner Through a Trustee73
Professional Income Escapes Clubbing Provisions73
7Income by Way of Salary, Commission, Fees or Remuneration Paid to Spouse from a Concern in which an Individual has Substantial Interest83
‘Substantial Interest’ by an Individual – Meaning83
Exception – No Clubbing if Remuneration is due to Technical or Professional Qualifications84
Technical or Professional Qualification85
Where both Husband and Wife have Substantial Interest and both are getting Remuneration from the concern87
When both Husband and Wife have Substantial Interest88
Exceptions to clubbing89
8Income of Individual to Include Income of Spouse, Minor Child, Etc.109
9Income Arising to the Spouse from an Asset Transferred Without Adequate Consideration122
Statutory requirement122
Asset Transferred to Spouse [Section 64(1)(iv)]123
Income to be clubbed in the hands of124
Capital Gain on Sale of Transferred Assets126
Appropriation when transferred asset is invested in a Business126
Income arising from Accretions to Transferred Assets126
Applicability to Second Generation Income126
When section 64(1)(iv) is not applicable [i.e., Exceptions to clubbing]127
Frequently Asked Questions (FAQ)132
10Income of Individual to include Income of Spouse159
11Income Arising to Son’s Wife (i.e., Daughter-In-Law) from the Assets Transferred Without Adequate Consideration171
Transfer to Son’s Wife [Section 64(1)(vi)]171
Income to be clubbed in the hands of172
Exceptions to clubbing172
12Clubbing of Income from Assets Transferred to a Person for the Benefit of Spouse185
Specified scenario185
Income to be clubbed in the hands of185
13Income from Assets Transferred to a Person or Association of Persons for the Benefit of Son’s Wife194
14Minor Child’s Income Clubbed with the Income of Parent197
The Object of introducing Section 64(1A)197
Section 64(1A) not violative of articles 14 and 19 of the Constitution of India200
Child in relation to an individual [Section 2(15B)]201
Minor child’s income (less than 18 years old) clubbed in the hands of that parent whose total income (excluding the income of the minor) is greater201
15Conversion of Self-Acquired Property into the Property of a Hindu Undivided Family223
“Any sum of money” is property – Clubbing provisions of section 64(2) can be said to be applicable to the HUF in respect of sum of money received without consideration223
Transfer of Asset to Hindu Undivided Family (HUF)223
Nature of Transaction224
Clubbed in the Hands of224
Conditions/ Exceptions224
16Liability of Person in respect of Income Included in the Income of Another Person252
17Exceptions to Clubbing – When Minor Income will not be Clubbed255
Income of a disabled child (disability of the nature specified in section 80U)255
Income earned by manual work done by the child255
Income earned by a minor child on account of manual work done255
Income earned by minor child on account of application of any skill, talent or specialised knowledge and experience255
18Cases in which Clubbing of Income is not applicable256
Income transferred before marriage256
Income derived from clubbed income256
Saved money is not asset transferred256
19Claiming TDS for Income under Clubbing Provisions257
20Clubbing of Income – Set-Off of Loss259
Income includes loss259
Clubbing of Negative Incomes (Losses)259
21Clubbing of Income – Section 263263
22Clubbing of Agricultural Income of the Minor Agricultural income of minor son of assessee has to be included in income of assessee for purpose of determining rate of income-tax applicable to income of assessee266
Agricultural income of minor children cannot be clubbed in hands of assessee (parent)267
23Applicability of Clubbing Provisions to Family Trusts269
Clubbing of Income and Private Trusts269
Clubbing with Spouse – Section 64(1) (iv) Gift to the spouse – Directly or Indirectly – through Trust269
24Computation of Income to be Clubbed277
Clubbing Head277
Deduction under Chapter VIA277
25Interplay of Clubbing Provisions and Capital Gain Provisions280
‘Income’ includes capital gains – The word ‘income’ in section 64(1)(iv) includes capital gains arising from sale of transferred assets280
26Frequently Asked Questions (FAQ)282

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