Clubbing of Income Clubbing of Income Accruing to Minor but Payable After Becoming Major

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The Tax Publishers Income Tax--Clubbing of Income Clubbing of Income Accruing to Minor but Payable After Becoming Major CA. Nisha Bhandari The issue as to whether clubbing provision as contained in Section 64(1A) would attract where income accrued to minor but payable only when he/she attains majority, is being discussed in this write-up. 1. Minors income need to be clubbed in parents income By virtue of Section 64(1A) in computing the total income of an individual all incomes accruing or arising to his minor children are to be included in the income of the individual barring certain exceptions. With effect from 1-4-1995, the entire income of a minor child who suffers from any disability, as specified in the Section 80U, is not to be clubbed with the income of the parent. It is to be noted that for attracting the clubbing provisions of Section 64(1A) one should be a minor at the point of time when the income accrues. Thus when the minor attains majority during the previous year, then, the income till the date he remained minor in that previous year should be clubbed in the hands of the parent. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Income Tax--Clubbing of Income

Clubbing of Income Accruing to Minor but Payable After Becoming Major

CA. Nisha Bhandari

The issue as to whether clubbing provision as contained in Section 64(1A) would attract where income accrued to minor but payable only when he/she attains majority, is being discussed in this write-up.

1. Minors income need to be clubbed in parents income

By virtue of Section 64(1A) in computing the total income of an individual all incomes accruing or arising to his minor children are to be included in the income of the individual barring certain exceptions.

With effect from 1-4-1995, the entire income of a minor child who suffers from any disability, as specified in the Section 80U, is not to be clubbed with the income of the parent.

It is to be noted that for attracting the clubbing provisions of Section 64(1A) one should be a minor at the point of time when the income accrues. Thus when the minor attains majority during the previous year, then, the income till the date he remained minor in that previous year should be clubbed in the hands of the parent.