Section 64 of ITA, 1961 : Section 64: Income Of Individual To Include Income Of Spouse, Minor Child, Etc

Explanation using Example

Let's say Mr. Sharma owns a substantial interest in a company, holding 25% of its voting power. His wife, Mrs. Sharma, is employed by the same company and receives a salary. According to Section 64(1)(ii) of the Income-tax Act, 1961, if Mrs. Sharma's salary is not due to her technical or professional qualifications, the salary income would be included in Mr. Sharma's total income for tax purposes, as he has a substantial interest in the company.

In another scenario, imagine Mr. Sharma transfers some shares to his son's wife without adequate consideration. If these shares generate dividend income, as per Section 64(1)(vi), this dividend income will be included in Mr. Sharma's total income and taxed accordingly, because the shares were transferred to his son's wife without adequate consideration.

Furthermore, if Mr. Sharma has a minor child who earns income through a talent show, this income would generally be included in Mr. Sharma's total income as per Section 64(1A). However, if the income is due to the child's skill or talent, it will not be included in Mr. Sharma's income as per the provided exceptions.