CLUBBING OF INCOME

Mr. X Transfer his Income alone to Mrs. X

ex House Property in the name of Mr.X and Rent from such Property received by Mrs.X

Q. no.1 Godown rent is taxable in the hands of Mr.V Since transfer of Income without trnasfer of Assets.

Q no.2 Interest on Fixed Deposit is taxable in the hands of Mr.X

sum no.3

Mr.A has substantial interest (25% equity) in X Ltd

Mr.A Mrs.A
Income from salary why clubbing?
of Mr.A 1200000 0 employed in concern where Mr.A has su
of Mrs.A (clubbed) 840000 0 she is not qualified for the job
2040000
Less: Standard deduction 50000
Income from salary 1990000

sum no.4
Clubbing provisions are not applicable
answer: option C

Mr.Rohit is a C.A.

sum no.5
for the previous year 2019-20

Profit made during the year Rs.150000

Income to be clubbed in the hands of Mr.A

is based on ratio as on 01.04.2019 (first day of the previous year 19-20)

Mr.A nil
Mrs.A 300000
 no ratio existed as on 01.04.2019; therefore, no clubbing provisions

The entire profit of Rs.150000 shall be assessed in the hands of Mrs.A only

for the previous year 2020-21

profit made during the year Rs.390000

Income to be clubbed in the hands of Mr.A

is based on ratio as on 01.04.2020 (first day of the previous year 20-21)

Mr.A Mrs.A Mr.A : Mrs.A

200000 450000 ratio 4:9

Income to be clubbed in the hands of Mr.A:

390000 x 4/13 120000

balance Rs.270000 to be assessed in the hands of Mrs.A

sum no.6

for the previous year 2019-20

profit made during the year (Rs.150000)

Income to be clubbed in the hands of Mrs.A

is based on ratio as on the first day of commencement of business (20.04.2019)

Mr.A 550000
Mrs.A 0

no ratio existed as on 20.04.2019; therefore, no clubbing provisions

for the previous year 2020-21

profit made during the year Rs.400000

Income to be clubbed in the hands of Mrs.A

is based on ratio as on 01.04.2020 (first day of the previous year 20-21)

Mr.A : Mrs.A
ratio 4:1
Income to be clubbed in the hands of Mrs.A:
(400000 x 1/5) Rs.80000

balance Rs.320000 to be assessed in the hands of Mr.A

ved by Mrs.X

in concern where Mr.A has substantial int; and

qualified for the job
note: capital as on 01.04.19 300000
add: profit 150000
add: capital intro 200000 from Mr.A
closing capital 650000

note: opening capital as on 01.04.2020: Rs.650000

Mr.A 200000
Mrs.A 450000
20:45
4:09

note:
capital as on 20.04.2019 550000
Add: capital introduced 100000
650000
Less: net loss 150000
closing capital 500000

opening capital as on 01.04.2020 Rs.500000

Mrs.A Mr.A
100000 400000