Section 64 of Income Tax Act "Income of individual to include income of spouse, minor child, etc"
64. (1) In computing the total income of any individual,
there shall be included all such income as arises directly
or indirectly-
(i) [Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.]
(ii) to the spouse of such individual by way of salary,
commission, fees or any other form of remuneration whether
in cash or in kind from a concern in which such individual
has a substantial interest :
Provided that nothing in this clause shall apply in relation
to any income arising to the spouse where the spouse
possesses technical or professional qualifications and the
income is solely attributable to the application of his or
her technical or professional knowledge and experience ;
(iii) [Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.]
(iv) subject to the provisions of clause (i) of section
27, to the spouse of such individual from assets transferred
directly or indirectly to the spouse by such individual
otherwise than for adequate consideration or in connection
with an agreement to live apart ;
(v) [Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.]
(vi) to the son's wife, of such individual, from assets
transferred directly or indirectly on or after the 1st day
of June, 1973, to the son's wife by such individual
otherwise than for adequate consideration;
(vii) to any person or association of persons from assets
transferred directly or indirectly otherwise than for
adequate consideration to the person or association of
persons by such individual, to the extent to which the
income from such assets is for the immediate or deferred
benefit of his or her spouse; and
(viii) to any person or association of persons from assets
transferred directly or indirectly on or after the 1st day
of June, 1973, otherwise than for adequate consideration, to
the person or association of persons by such individual, to
the extent to which the income from such assets is for the
immediate or deferred benefit of his son's wife.
Explanation 1.-For the purposes of clause (ii), the
individual in computing whose total income the income
referred to in that clause is to be included, shall be the
husband or wife whose total income (excluding the income
referred to in that clause) is greater ; and where any such
income is once included in the total income of either
spouse, any such income arising in any succeeding year shall
not be included in the total income of the other spouse
unless the Assessing Officer is satisfied, after giving that
spouse an opportunity of being heard, that it is necessary
so to do.
Explanation 2.-For the purposes of clause (ii), an
individual shall be deemed to have a substantial interest in
a concern-
(i) in a case where the concern is a company, if its shares
(not being shares entitled to a fixed rate of dividend
whether with or without a further right to participate in
profits) carrying not less than twenty per cent of the
voting power are, at any time during the previous year,
owned beneficially by such person or partly by such person
and partly by one or more of his relatives ;
(ii) in any other case, if such person is entitled, or such
person and one or more of his relatives are entitled in the
aggregate, at any time during the previous year, to not less
than twenty per cent of the profits of such concern.
Explanation 2A.-[Omitted by the Finance Act, 1992, w.e.f.
1-4-1993.]
Explanation 3.-For the purposes of clauses (iv) and (vi),
where the assets transferred directly or indirectly by an
individual to his spouse or son's wife (hereafter in this
Explanation referred to as "the transferee") are invested by
the transferee,-
(i) in any business, such investment being not in the nature
of contribution of capital as a partner in a firm or, as the
case may be, for being admitted to the benefits of
partnership in a firm, that part of the income arising out
of the business to the transferee in any previous year,
which bears the same proportion to the income of the
transferee from the business as the value of the assets
aforesaid as on the first day of the previous year bears to
the total investment in the business by the transferee as on
the said day ;
(ii) in the nature of contribution of capital as a partner
in a firm, that part of the interest receivable by the
transferee from the firm in any previous year, which bears
the same proportion to the interest receivable by the
transferee from the firm as the value of investment
aforesaid as on the first day of the previous year bears to
the total investment by way of capital contribution as a
partner in the firm as on the said day,
shall be included in the total income of the individual in
that previous year.
(1A) In computing the total income of any individual, there
shall be included all such income as arises or accrues to
his minor child, not being a minor child suffering from any
disability of the nature specified in section 80U :
Provided that nothing contained in this sub-section shall
apply in respect of such income as arises or accrues to the
minor child on account of any-
(a) manual work done by him; or
(b) activity involving application of his skill, talent or
specialised knowledge and experience.
Explanation.-For the purposes of this sub-section, the
income of the minor child shall be included,-
(a) where the marriage of his parents subsists, in the
income of that parent whose total income (excluding the
income includible under this sub-section) is greater ; or
(b) where the marriage of his parents does not subsist, in
the income of that parent who maintains the minor child in
the previous year,
and where any such income is once included in the total
income of either parent, any such income arising in any
succeeding year shall not be included in the total income of
the other parent, unless the Assessing Officer is satisfied,
after giving that parent an opportunity of being heard, that
it is necessary so to do.
(2) Where, in the case of an individual being a member of a
Hindu undivided family, any property having been the
separate property of the individual has, at any time after
the 31st day of December, 1969, been converted by the
individual into property belonging to the family through the
act of impressing such separate property with the character
of property belonging to the family or throwing it into the
common stock of the family or been transferred by the
individual, directly or indirectly, to the family otherwise
than for adequate consideration (the property so converted
or transferred being hereinafter referred to as the
converted property), then, notwithstanding anything
contained in any other provision of this Act or in any other
law for the time being in force, for the purpose of
computation of the total income of the individual under this
Act for any assessment year commencing on or after the 1st
day of April, 1971,-
(a) the individual shall be deemed to have transferred the
converted property, through the family, to the members of
the family for being held by them jointly ;
(b) the income derived from the converted property or any
part thereof shall be deemed to arise to the individual and
not to the family ;
(c) where the converted property has been the subject-matter
of a partition (whether partial or total) amongst the
members of the family, the income derived from such
converted property as is received by the spouse on partition
shall be deemed to arise to the spouse from assets
transferred indirectly by the individual to the spouse and
the provisions of sub-section (1) shall, so far as may be,
apply accordingly :
Provided that the income referred to in clause (b) or clause
(c) shall, on being included in the total income of the
individual, be excluded from the total income of the family
or, as the case may be, the spouse of the individual.
Explanation 1.-For the purposes of sub-section (2),-
"property" includes any interest in property, movable or
immovable, the proceeds of sale thereof and any money or
investment for the time being representing the proceeds of
sale thereof and where the property is converted into any
other property by any method, such other property.
Explanation 2.-For the purposes of this section, "income"
includes loss.
What is Reference to Valuation Officer? Section 55A of Income Tax Act 1961
What is Income from other sources? Section 56 of Income Tax Act 1961
What are Deductions? Section 57 of Income Tax Act 1961
What are the Amounts not deductible? Section 58 of Income Tax Act 1961
What is Cash credits? What are Unexplained investments? Section 68 and 69 of Income Tax Act 1961