Ever wondered why your tax bill isn’t as low as you expected, even after some clever financial moves?
Here’s the deal: The taxman has a keen eye for the ‘Clubbing of Income’ game.
It’s like a chess match where every move counts and the Income Tax Act is the rulebook.
📖 Sections That Matter:
➡️ Section 60: Income transferred without an asset? It’s still yours.
➡️ Section 61: Revocable asset transfer? The income might boomerang back to you.
➡️ Section 64: Spouse or minor child earning through your assets? That income might just end up in your tax basket.
💡 The Strategy: Think you can outsmart the system by transferring assets to a spouse or minor child? Think again.
The tax laws are designed to keep the income in your court, ensuring that everyone pays their fair share.
🚀 The Takeaway: Before you make your next move in this financial chess game, remember: transferring the asset’s legal ownership is key.
It’s not just about saving taxes; it’s about playing by the rules and planning smart.
✨ Understanding the ‘Clubbing of Income’ rules can save you from tax surprises and help you plan better for the future.
Ready to make your move?
