Report No. 265

11. Recommendations

The Commission is of the view that income earned by way of interest on the amount of maintenance deposited in favour of the child does not require to be exempted from being clubbed with the income of the parent/ guardian; as such exemption, if granted, would open flood gates of tax evasion and would defeat the very object of inserting the provisions of section 64(lA), which had been brought to plug-in the loopholes to prevent the avoidance of tax, causing substantial loss or leakage of revenue.

Sd/-
[Justice Dr. B.S. Chauhan]
Chairman

Sd/-
[Justice Ravi R. Tripathi]
Chairman

Sd/-
[Prof. (Dr.) S. Sivakumar]
Member

Sd/-
[Dr. Sanjay Singh]
Member-Secretary

Sd/-
[Suresh Chandra]
Ex-officio Member

Sd/-
[Dr. G. NarayanaRaju]
Ex-officio Member