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Clubbing provisions and Set Off - Coggle Diagram
Clubbing provisions and Set Off
CLUBBING OF INCOME
TRANSFER OF INCOME [SECTION 60]
Section 60 of Income Tax Act, 1961
Applicability
[Section 60]
The taxpayer
owns an asset.
The ownership of asset is not transferred by him.
The income from the asset is transferred to any person under a settlement, or agreement.
REVOCABLE TRANSFER OF ASSETS [SECTION 61]
Section 63
it contains any provision for the re-transfer directly or indirectly of the whole or any part of the income
or assets to the transferor
it, in any way, gives the transferor a right to reassume power directly, or indirectly over the whole or any
part of the income or assets
INCOME OF SPOUSE
Income to spouse from a concern in which such individual
has substantial interest [Section 64(1)(ii)]
Income to spouse from the assets transferred [Section
64(1)(iv)]
INCOME FROM ASSETS TRANSFERRED TO SON’S WIFE [SECTION 64(1)(vi)]
TRANSFER FOR IMMEDIATE OR DEFERRED BENEFIT OF SON’S WIFE [SECTION 64(1)(viii)]
INCOME TO SPOUSE THROUGH A THIRD PERSON [SECTION 64(1)(vii)]
CLUBBING OF INCOME OF MINOR CHILD [SECTION 64(1A)]
INCOME FROM THE CONVERTED PROPERTY [SECTION 64(2)]
Dayalbhai Madhavji Vadera v. C.I.T. (1966) 60 ITR 551 of the Gujarat High Court
RECOVERY OF TAX
Dual Liability for Tax
SET-OFF AND CARRY-FORWARD OF LOSSES
Head of Income [Section 70]
Exceptions to General Rule
Speculative Business
Losses
Long-term capital Loss
Casual Income
Losses from the activity of owning and
maintaining race horses
Loss from an exempted source cannot be set off
against taxable Income
Income losses Intra-head Set off
Loss from business or profession
Loss from speculation business
Set-Off of Loss from One Head Against Income from Another Head [Section 71]
CARRY-FORWARD OF LOSSES
Loss in Non-Speculation Business [Section 72]
Loss in Speculation Business [Section 73]
Carry Forward and Set Off of Losses by Specified Business [Section 73A]
Set-Off and Carry Forward of Capital Losses [Section 74]
Loss on Maintenance of Race Horses [Section 74A]
Loss Under the Head “Income From Other Sources
CARRY FORWARD AND SET-OFF OF ACCUMULATED BUSINESS LOSS AND UNABSORBED DEPRECIATION IN CERTAIN CASES OF AMALGAMATION OR DEMERGER ETC. [SECTION 72A]
Carry forward and set off of accumulated loss and unabsorbed depreciation in case of amalgamation
[Section 72A(1), (2) and (3)]
Consequences if the above conditions are not satisfied [Section 72A(3)]:
Carry forward and set off of accumulated losses and unabsorbed depreciation in case of demerger
[Sections 72A(4) and (5]
Carry forward and set off of accumulated losses and unabsorbed depreciation in case of
reorganisation of business [Section 72A(6)]
Consequences if the conditions laid down under Section 47(xiii), (xiv) and 47(xiiib) are not complied
with [Proviso to Section 72A(6) & (6A)]
CARRY FORWARD AND SET OFF OF ACCUMULATED LOSS AND UNABSORBED DEPRECIATION ALLOWANCE IN SCHEME OF AMALGAMATION OF BANKING COMPANY IN CERTAIN CASES [SECTION 72AA]
accumulated loss
banking company
banking institution
unabsorbed depreciation
TREATMENT OF CARRY-FORWARD OF LOSSES OF CERTAIN ASSESSEES
Carry-forward and set-off of losses in case of change in constitution of firm [Section 78]
Carry-forward and set-off of losses in case of succession of business or profession
Carry-forward and set-off of losses of companies in which the public are not substantially interested
[Section 79]
Carry forward and set of losses in case of eligible start-up [Section 79(b)]
SUBMISSION OF RETURN FOR LOSS [SECTION 80]
determined in pursuance of a return filed u/s 139(3).