My wife works at my firm as a supervisor and earns 45,000 per month. Will her income be clubbed in …
My wife works at my firm as a supervisor and earns 45,000 per month. Will her income be clubbed in my hands, just because it is my firm? Even if she is exceptionally good at her work and gets paid the same as the supervisor before her?
If you can prove that she is qualified for the job, and earns just as much other employees earn in her rank, it won't matter that it is your firm.
Clubbing provisions is only applicable if one can prove either of the following:
1. That she is not qualified for the position she is working.; (All her income would be clubbed in your hands).
2. That she earns more than the employees in the same position as her. (suppose, if the salary for that post was 25000 per month, she would pay tax at 25000 per month in her ITR, and you would be clubbed with the excess amount of Rs. 20000 per month.)
