8.    The Incomes of Spouses are Not Clubbed Together - HOW to Ensure ?

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One of the important aspects of tax planning is to ensure a steady income not only for oneself but also for other members of the family. Without proper tax planning, the income accruing, arising or received by an assessee’s wife might be clubbed with the income of the husband, thereby leading to a higher incidence of income tax. Similarly, the income of the husband could be clubbed with the income of the wife for income tax assessment in certain cases. Hence, proper tax planning demands the adoption of a legal device by which the income of a wife is not clubbed with the income of the husband and vice-versa.

For this it is necessary that a married lady’s income be from her own separate or independent sources. She can then be independently assessed in a separate income tax file, without her income being clubbed with that of her husband, and enjoy a separate exemption up to a taxable income of ` 2,00,000 in respect of her own income for the A. Y. 20 13- 2014. She may form the nucleus of her own funds by way of gifts from any relatives, excepting three persons; her husband, her father-in-law or mother-in-law. In the case of any gifts received from these three, even though gifts from relatives are in general exempt from gift-tax, the income arising directly or indirectly from them would not be considered her income but that of the husband, the father-in-law or the mother-in- law, as the case may be, for the levy of income tax. Thus, a married woman may receive gifts from her adult son, her father, mother, uncle, brother, sister or friend, etc. If this precaution is taken, the income arising to a housewife, or a married working lady, would be considered to be her own separate income. If her funds are insufficient, she may take loans and thus augment her investible resources. With the help of her own funds, collected either by way of gifts from relatives, or loans, she could also enter into a partnership and thus be assessed separately in respect of her share of the income from the firm as explained elsewhere in the book.


If the gift is made to the prospective wife or the prospective daughter-in-law, then too, there is no clubbing of income. In this manner one can develop funds through gifts, etc. before the date of marriage. Gifts from non-relatives without attracting income tax can now be received only upto
` 50,000 from the financial year 2006-07 in a year. This exemption is in respect of cash gifts as wells as gifts received in kind. However, on the occasion of marriage, gifts can be received from nonrelatives as tax-free.
 
Sec. 143(3) : Scrutiny Assessments by Income Tax Department
“Penalties” Under Income Tax Act. 1956
How is a Search Operation Conducted by Income Tax Department ?
Surveys for Checking Ostentatious Expenditure
Surveys for Enforcing Compliance with Provisions of TDS
“Summon” U/s 131 of Income Tax Act.
Investigation by Income Tax Department:
Appellate Authorities of Income Tax Department
Power to Call for Information U/s Sec. 133(6) of Income Tax Act.
Specific Surveys U/s 133A(1) of Income Tax Act.
Types Of Income Subject To TDS [Deduction Of Tax At Source]
Pre-Requisite For Claiming Income Tax Refund
Benefits of Filing Income Tax Returnsn
Section-139(9): Defective Tax Return
 
 
How is a Search Operation Conducted by Income Tax Department ?
The provisions relating to search and seizure are contained in section 132 of the Income Tax Act, 1961.
 
Sec. 143(3) : Scrutiny Assessments by Income Tax Department
Scrutiny assessment refers to the examination of a return of income by giving an opportunity to the assessee to substantiate the income declared and the expenses, deductions, losses, exemptions, etc. claimed in the return with the help of evidence..
 
“Penalties” Under Income Tax Act. 1956
Penalties by way of monetary payments are charged under the Income Tax Act for various defaults relating to payment of taxes, maintenance of accounts, for noncompliance and non co-operation during proceedings, for evasion of tax, etc..
 
Income of Individuals And HUFs – As a Tax Payers Under Income Tax Act, 1961.
The individual tax payers and also the HUFs while proceeding to calculate the net taxable income in the first phase are required to arrive at the gross total income under different heads of income...
 
Types Of Income Subject To TDS [Deduction Of Tax At Source]
The following types of incomes are mainly subject to deduction of tax at source: (a) Salaries Section 192. (b) Interest on securities Section 193..
 
Pre-Requisite For Claiming Income Tax Refund
For claiming income tax refund the first prerequisite is that there should have been excess tax paid or deducted at source on the basis of return of income.
 
Section-139(1) : Provision for Voluntary Income Tax Return
Every person,— (a) being a company or a firm; (whether having income or loss) or (b) being a person other than a company or a firm if his total income or the total ncome of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax, shall file a return of his income in the prescribed form.
 
Benefits of Filing Income Tax Returnsn
We have heard many a times that every individual whose total income exceeds the maximum exemption limit is obligated to furnish his/her Income Tax Return or ITR.
 
Section-139(9): Defective Tax Return
Where the Assessing Officer considers that the return of income furnished by the assessee is defective, he may intimate the defect to the assessee and give him an opportunity to rectify the defect within a period of 15 days from the date of intimation.
 
Section 139(5) : Revised Income Tax Return
If any person, having furnished a return u/s 139(1), or in pursuance of a notice issued under section 142(1), discovers any omission or any wrong statement therein, he may furnish a revised return at any time.
 
Section-139(4A) : Income Tax Return of Charitable and Religious Trusts
Every person in receipt of income derived from property held under trust or other legal obligation wholly or partly for charitable or religious purposes or of income being voluntary contributions referred to in section 2(24)(iia) shall.
 
Section-139(4) : Belated Income Tax Return
If an assessee has not furnished a return of his income within the time allowed to him under section 139(1) or within the time allowed under a notice issued under section 142(1).
 
 
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