Introduction The idea of clubbing of income of a spouse is significant in the Indian tax system. It is referred to as combining one spouse’s income with another spouse’s income for tax purposes. This occurs when one spouse transfers one’s income to the other, or when one spouse has assets or investments in their name, … Read more
Introduction: There may be instances where a person may be required to file income of another person with his own. Clubbing of Income means adding the income of another person to one’s own income and then filing the return for it. A person may transfer his income to another person to avoid his tax liability … Read more
Introduction to clubbing of income from gift Clubbing of income from a gift is a term used to describe a situation where the income earned from a gift is added to the income of the person who has gifted it, for the purpose of taxation. These provisions have been made to prevent tax evasion by … Read more
Introduction- What is clubbing of income? Clubbing of income is a concept under the Income Tax Act, 1961 (hereinafter referred to as the “Act”). Clubbing of income means the inclusion of the income of one person in the total income of another person. This aspect is governed by Section 64 of the Act, and it … Read more
Introduction Section 194LB of the Income Tax Act, 1961, deals with the deduction of tax at source on income by way of interest from an infrastructure debt fund. This section mandates that any person who makes a payment of interest to a non-resident (not a company) or a foreign company on behalf of an infrastructure … Read more
Introduction Section 194IC of the Income Tax Act, of 1961 talks about the deduction of tax from payments under the Joint Development Agreement. What is Section 194IC of the Income Tax Act, 1961? Any person who pays to a Resident any amount by way of consideration (but not consideration in kind) under a Joint Development … Read more
Introduction Section 115BBD of the Income Tax Act, 1961 was introduced by the Finance Act, 2020, and is applicable from the assessment year 2021-22 onwards. This provision is aimed at promoting foreign investment by providing a concessional tax rate to Indian companies that receive dividend income from specified foreign companies. The concessional tax rate … Read more
Introduction to Section 206AB: Section 206AB of the Income Tax Act is a recent amendment introduced by the Finance Act, 2021. Moreover, this section aims to ensure timely and proper deduction of tax at source (TDS) by providing for a higher rate of TDS on payments made to specified persons. Furthermore, specified persons are those … Read more
Introduction to Section 194G of Income Tax Act, 1961 Section 194G of the Income Tax Act, 1961 deals with the provisions for deduction of tax at source (TDS) on commission, remuneration, or prize by whatever name is called, paid on lottery tickets. Further, it specifies the liability of the person responsible for paying such income … Read more
Introduction to Section 115BB: There are certain casual incomes such as winning from lotteries, horse races, and other games of gambling or betting in nature which are taxed at a certain flat rate. The government wants to discourage the general public from doing those types of activities and that is why it has set a … Read more