Tax upon Clubbing of Income
The total income of an individual also includes certain income of other persons.
- income of spouse from remuneration derived from the concern in which the individual is substantially interested unless the remuneration is by virtue of the application of technical or professional skill possessed by him or her;
- assets transferred by the individual to the spouse or to any other person for the benefit of the spouse unless the transfer is for adequate consideration or in consideration of an agreement to live apart.
- income of son's wife from assets transferred by the individual to her or to any other person for her benefit unless the transfer is for adequate consideration.
- income of his minor child - other than the minor child suffering from disability specified in section 80-U, except when such income arises to the child on account of any manual work done by him or on account of any activity which involves application of any skill, talent or specialized knowledge and experience.
The individual in whose income the income of other spouse as mentioned in (a) (i) above is to be included will be the husband or wife whose total income - before including such remuneration income - is greater. Similarly the income of minor child is to be included in the income of the parent having greater income. If the marriage of the parents does not subsist, it will be parent who maintains the child.