Tag Archives: investments for family

Clubbing of Income – Dos and Don’ts

Section 60 of the Income tax rules covers clubbing of income – which specifies conditions under which if A invests for B, the income earned by B on the investment is taxable in the hands of A. Though this section aims to curb tax evasion, an in depth knowledge of the provisions of this section will help one know about the conditions under which the clubbing of income does not happen and how this can be used to bring down his or her tax liability.

Investments made in the name of children – Continue reading →

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