Total income of a person may include income of other persons also
13 Aug 2009
The Direct Taxes Code defines a person's income to include income of his/her spouse and dependent child/children or any transfer of income or assets among them.
The total income of any individual shall include: - (a) all income which accrues, directly or indirectly- (i) to the spouse, by way of salary, commission, fees or any other form of remuneration, from a concern in which the individual has a substantial interest other than any income solely attributable to the application of the technical or professional knowledge and experience of the spouse; (ii) from assets transferred, directly or indirectly, to the spouse by the individual, otherwise than for adequate consideration, or in connection with an agreement to live apart; and (iii) from assets transferred, directly or indirectly, to any other person by the individual otherwise than for adequate consideration, to the extent to which the income from such assets is for the immediate or deferred benefit of the spouse;
(b) All income which accrues to a minor child (other than a minor child being a person with disability or person with severe disability) of the individual, other than income which accrues to the child on account of any - (i) manual work done by the child; or (ii) activity involving application of the skill, talent or specialised knowledge and experience of the child;
(c) All income derived from any converted property or part thereof; (d) all income derived from any converted property, which is received by the spouse or minor child upon partition of the Hindu undivided family of which the individual is a member.
(2) The income referred to in sub-clause (i) of clause (a) of sub-section (1) shall, regardless of anything contained therein, be included in the total income of the spouse whose total income (excluding the income referred to in that sub-clause) is higher.
(3) The Central Board of Direct Taxes may prescribe the method for determining the income referred to in sub-clause (ii) of clause (a) of sub-section (1).
