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Clubbing of Income: Tax Implications

The document presents various income scenarios for individuals and families, detailing assessable incomes for tax purposes. It includes specific income sources for Mr. Singh and his family, as well as Balu's HUF, and poses questions regarding the taxation of certain incomes. Additionally, it requires the computation of total income for Mr. Balaram Mahato for the assessment year 2024-25.

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SANJIB SHARMA
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123 views1 page

Clubbing of Income: Tax Implications

The document presents various income scenarios for individuals and families, detailing assessable incomes for tax purposes. It includes specific income sources for Mr. Singh and his family, as well as Balu's HUF, and poses questions regarding the taxation of certain incomes. Additionally, it requires the computation of total income for Mr. Balaram Mahato for the assessment year 2024-25.

Uploaded by

SANJIB SHARMA
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Clubbing

Q.1. Mr. Singh is a trader. Particulars of his income and those of the members of his family are given below. These
incomes relate to the previous year ended 31st March, 2023:
Particulars Amount
Income from business (Mr. Singh's) 90,000

Salary derived from an educational institution by Mrs. Singh. She is the principal of the institution 50,000

Interest on company deposits derived by Master Deep Singh (minor son). These deposits were
made in the name of Deep Singh by his father's father about 6 years ago. 12,000

Receipts from sale of paintings and drawings made by minor Dipali Singh (minor daughter of Mr.
& Mrs. Singh and noted child artist) 60,000

Income by way of lottery earnings by Master Dipindar Singh (minor son of Mr. Singh) 6,000
Discuss whether the above will form part of the assessable income of any individual and also compute the assessable
income of Mr. Singh.

Q.2. Balu is the karta of a HUF, whose members derive income as given below:
Particulars Amount
Income from Balu's own business 50,000

Mrs. Balu a dermatologist (taxable salary) 80,000

Minor son Deepak (earning interest on fixed deposits with [Link]., which were gifted to him by
his grandfather) 15,000

Minor daughter Priya gave a dance performance and received remuneration 1,00,000

Deepak got winnings from lottery (gross) 2,00,000

Q. 3. In whose hand the following incomes will be taxable?


(a) Interest on Debentures of ABC Ltd. received by Mrs. Y when the Debentures were transferred by Mr. X to Mrs. Y
assuming that:
(i) Such transfer was made before marriage.
(ii) Such transfer was made at a time when there is husband-wife relationship between Mr. X and Mrs. Y.
(b) Mr. P held 22% shares of Star Ltd. where Mrs. Q. wife of Mr. P, is employed as Finance Manager at a salary of
₹ 50,000 p.a. Mrs. Q is a Chartered Accountant and also holds MBA (Finance) degree.
(c) Nipa is the minor child of Mr. and Mrs. Bose. Mr. Bose has salary income of ₹ 4,00,000 and Mrs. Bose has income
from other sources of ₹ 5,00,000. Nipa earns income of ₹ 50,000 from a T.V. Reality show and ₹ 10,000 interest
on fixed deposit with a bank.

Q.4. From the particulars given below, compute the total income of Mr. Balaram Mahato for the assessment year
2024-25:
(i) Income from business ₹ 1,08,000
(ii) Income of minor son (singer by profession) ₹ 15,000
(iii) Winnings from Lottery (Gross) (ticket purchased in the name of the Mr. M. Mahato's ₹ 8,500
minor daughter)
(iv) Mr. Mahato's wife is a government servant and her income computed under the head ₹ 70,000
salaries
(v) Interest on fixed deposit with SB1 in the name of minor daughter ₹ 22,500

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