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July 13 To July 19, 2019 u Taxmann’s Corporate Professionals Today u Vol. 45 u 25Clubbing of Income
Q 73. Income of Mrs. A is clubbed in
hands of Mr. A. Whether Mrs. A is liable
for filing of ITR?
As income of Mrs. A is clubbed with income
of Mr. A, same wouldn’t be included again
in the income of Mrs. A. Thus, if Mrs. A
doesn’t have income exceeding maximum
exemption limit not chargeable to tax, she
is not liable to file ITR.
Q 74. My daughter is 15 years old and has
earned income amounting to ` 1000,000 by
participating in skill based competition. She
does not have PAN. Is she required to file
ITR for the concerned year?
Any income that accrues or is paid to minor
is added to the income of parents. However, if
a minor child earns any income by application
of his skill, talent or specialized knowledge
and experience, it is excluded from clubbing
provision. Minor child is assessable on such
income through his guardian.
Thus, you need to apply for PAN of your
daughter in form 49A on her behalf. After
obtaining PAN, you need to get yourself
registered on the e-filing portal as her rep-
resentative assessee and file ITR for the
concerned Assessment Year.
The PAN application for a minor child shall
be filed and signed by representative assessee
on her behalf. In such cases, besides details
of the minor, details of such representative
assessee shall also be furnished under PAN
application Form in Item 14.
Q 75. My father died on August 1, 2017. I
received some income in his name during
the Financial Year 2018-19. My father failed
to write his will before dying and the par-
tition has not yet been taken place with
respect to his property. In whose hands,
such income will be taxed?
In case of intestate death, any income aris-
ing in the hands of the deceased person is
taxable in the hands of his legal heirs.
Q 76. Mr. X died on 23rd August, 2018.
He had received salary income amounting
to `12 lakhs before dying for the period
starting from April 1, 2018 to 22nd August,- After his death, some interest income
has accrued in his name amounting to
10,000. Is ITR required to be filed for the relevant year? Yes, filing of return is must in this case. A person is exempt from filing of return only if his total income doesn’t exceed maximum exemption limit. The liability to file ITR in case of Mr. X would be as follows: (a) Income accruing for the period before death of Mr. X ITR is required to be filed in the name of the deceased, i.e., Mr. X under his PAN by his legal representative. Thus, ITR for salaried income of12 lakhs
to be filed by the legal representative
of Mr. X.
(b) Income accruing for the period after his death
If Mr. X had prepared the will before
his death, then executor is required to
file ITR before distribution and there-
after deceased legal representatives are
required to file his return in their per-
sonal capacity.
However, if Mr. X had not prepared his will
before his death, his legal heirs are required
to file ITR in their own capacity.
Thus, ` 10,000 shall be added to income of
legal representative or legal heirs, as the
case may be.
lll - Inspector-General or Registrar or Sub-Registrar under the Registration Act, 1908.
FAQs ON INCOME-TAX RETURNS FOR ASSESSMENT YEAR 2019-20