Clubbing

Clubbing in husband's income to the ratio of his asset and no clubbing in brothers income.

Don't show it as transfer show it as land given on zero rent by signing a consent letter by husband.

Yes gift from wife will be clubbed in the proportion of gift to other asset of business and no clubbing for brothers gift.

That's how income tax act is made we need to club spouse gift.

No clubbing if gift from sister.

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Thank you

Hi,

1) No clubbing 

2) Yes clubbing will be done proportionately. No clubbing from brother gift.

3) No clubbing from sister gift.

Thanks

Hi,

-No, the income earned by your wife will not be clubbed with the your brother income.

-Yes, It will be clubbed proportionately.

-No clubbing if you receive gift from your sister and start business.

Hello,

There won't be any clubbing in the first case.

Yes, your income will be clubbed in your wife's income proportionately. And no clubbing of income from Brother's gift.

No clubbing of income from Sister's Gift.

I hope this answer satisfies your requirement.

Regards,

CA Hunny Badlani

Hi,

1. There is no clubbing between brother and sister if brother gives some money to sister. Hence, the proportionate money will be clubbed in your income. 

2. Yes, it will be clubbed if the money is received from wife but not in case money is received from brother/sister.

Hello Sir,

Normally people gift their relatives this amount of money as irrevocable transfer without thinking too much on the clubbing, since you have asked specifically on clubbing, you may give a loan @ SBI personal rate of interest. For this you will have to maintain proper records of collection of EMI and interest from your wife account.

Yes income will be clubbed to your wife's income.

As it's a gift as long as that asset is earning income the income will be clubbed or there is a divorce between husband and wife.

The turnover needs to be divided and income will be clubbed in wife's income as income from business.

Thank you

Hello,

Yes, your income from the business will be clubbed in your wife's income proportionately for Rs. 10 Lakhs.

If your profit falls below 8% after clubbing, still you can show 8% presumptive profit under 44AD or else if you want to show lower profit than 8%, you will have to go for Tax audit under Sec. 44AB.

Rather than showing it as a gift you can take this as a loan from your wife and pay her interest.

I hope this answer satisfies your requirement.

Regards,

CA Hunny Badlani

HI,

- Yes, the profit earned from your business form now onwards will have to be clubbed in your wife's income.

-Yes, even if she is not having any income it will be clubbed.

-Either you can declare on or above 8 % profit or go for tax audit u/s 44AB.

-You can take a loan from your wife. It is valid under Income tax law. 

It will not treated as gift so long as you show in your liability and she shows her assets in the IT records till the amount is returned by you. Clubbing provisions will not apply 

The only precaution to be taken in such a case is that the interest charged by your wife should be a reasonable one.

Hi,

- Yes clubbing will be applicable in your hands.

- Clubbing will done till the amount is returned back.

- First calculate the income as taxable in the hands of your wife and then club it. Rs. 10 lacs is not an income. Income generated out of Rs.10 lacs will be clubbed and then Profit of 8% will be calculated on the income generated.

- If you avail benefit of 44AD then you need to club it before its application and if the income shown will be below 8% then you need to go for the Tax Audit.

- Tax will be payable by you only and not your wife.

Thanks