Question

Master Ajay (Age 16 years) received following income during

2019-20.

Rs.

(a) Interest on Bank deposits 75,000

(b) Interest on Govt. securities 80,000

(c) Interest on Debentures 40,000

(d) Income by acting in a film 1,00,000

(e) Income by a singing concert held by him 50,000

(f) His Father total income 1,09,000

(g) His mother total income 1,09,100

Decide about the person in whose hands the above incomes shall

be taxable and the amount of income to be taxed.​

Answer 1

Answer:

it

Explanation:

Section 64 of Income Tax Act explains rules regarding clubbing of income.

Clubbing income of spouse:

Income arising directly or indirectly to the spouse of such individual by way of salary, commission, fees or any other form of remuneration, in cash or in kind will be added to the tax-paying spouse's income. The tax paying spouse should have a substantial interest in the concern from which the spouse has received remuneration.

Clubbing income of a minor child

Any income earned by a minor child during the financial year should be clubbed in income of the parent and taxed accordingly. In case both the parents are earning, the income of a minor child should be clubbed in the income of the parent whose total income is greater.

there fore it shall be taxed in the hands of mother

exemption:1500 per child