Building capital for spouse and son's wife
Keeping in view the joint family system prevailing in India where the financial affairs of the family are generally managed and controlled by the male head of the family, it is common to come across situations where the family head plans holding of assets and deriving income in the hands of his wife or son's wife, thus trying to avail advantage of tax planning under the Income-tax Act.
However, the clubbing of income provisions under Section 64 of the Income-tax Act seek to guard against generation of income and escapement of tax through the route of gifts to such close family entities.
Clubbing of income in respect of assets gifted to spouse or son's wife
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