Income Tax Act, 1961
Section 7: Ins. by Act 32 of 1994, s. 20 (w.e.f. 11995).
7. Ins. by Act 32 of 1994, s. 20 (w.e.f. 11995).
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(b) activity involving application of his skill, talent or specialised knowledge and experience.
Explanation.—For the purposes of this sub-section, the income of the minor child shall be
included,—
(a) where the marriage of his parents subsists, in the income of that parent whose total income
(excluding the income includible under this sub-section) is greater ; or
(b) where the marriage of his parents does not subsist, in the income of that parent who maintains
the minor child in the previous year,
and where any such income is once included in the total income of either parent, any such income
arising in any succeeding year shall not be included in the total income of the other parent, unless the
Assessing Officer is satisfied, after giving that parent an opportunity of being heard, that it is necessary so
to do.]
1[(2) Where, in the case of an individual being a member of a Hindu undivided family, any property
having been the separate property of the individual has, at any time after the 31st day of December, 1969,
been converted by the individual into property belonging to the family through the act of impressing such
separate property with the character of property belonging to the family or throwing it 2[into the common
stock of the family or been transferred by the individual, directly or indirectly, to the family otherwise
than for adequate consideration (the property so converted or transferred being hereinafter referred to as
the converted property)], then, notwithstanding anything contained in any other provision of this Act or in
any other law for the time being in force, for the purpose of computation of the total income of the
individual under this Act for any assessment year commencing on or after the 1st day of April, 1971,—
(a) the individual shall be deemed to have transferred the converted property, through the family,
to the members of the family for being held by them jointly ;
(b) the income derived from the converted property or any part thereof 3*** shall be deemed to
arise to the individual and not to the family ;
4[(c) where the converted property has been the subject-matter of a partition (whether partial or
total) amongst the members of the family, the income derived from such converted property as is
received by the spouse 5*** on partition shall be deemed to arise to the spouse 5*** from assets
transferred indirectly by the individual to the spouse 5*** and the provisions of sub-section (1) shall,
so far as may be, apply accordingly:]
Provided that the income referred to in clause (b) or clause (c) shall, on being included in the total
income of the individual, be excluded from the total income of the family or, as the case may be, the
spouse 5*** of the individual.
Explanation 6[1].—For the purposes of sub-section (2),—
7*** “property” includes any interest in property, movable or immovable, the proceeds of sale thereof
and any money or investment for the time being representing the proceeds of sale thereof and where the
property is converted into any other property by any method, such other property.
8* * * * *
9[Explanation 2.—For the purposes of this section, “income” includes loss.]
activity involving application of his skill, talent or specialised knowledge and experience.
Explanation.—For the purposes of this sub-section, the income of the minor child shall be
included,—
where the marriage of his parents subsists, in the income of that parent whose total income
(excluding the income includible under this sub-section) is greater ; or
where the marriage of his parents does not subsist, in the income of that parent who maintains
the minor child in the previous year,
and where any such income is once included in the total income of either parent, any such income
arising in any succeeding year shall not be included in the total income of the other parent, unless the
Assessing Officer is satisfied, after giving that parent an opportunity of being heard, that it is necessary so
to do.]
1[
Where, in the case of an individual being a member of a Hindu undivided family, any property
having been the separate property of the individual has, at any time after the 31st day of December, 1969,
been converted by the individual into property belonging to the family through the act of impressing such
separate property with the character of property belonging to the family or throwing it 2[into the common
stock of the family or been transferred by the individual, directly or indirectly, to the family otherwise
than for adequate consideration (the property so converted or transferred being hereinafter referred to as
the converted property)], then, notwithstanding anything contained in any other provision of this Act or in
any other law for the time being in force, for the purpose of computation of the total income of the
individual under this Act for any assessment year commencing on or after the 1st day of April, 1971,—
the individual shall be deemed to have transferred the converted property, through the family,
to the members of the family for being held by them jointly ;
the income derived from the converted property or any part thereof 3*** shall be deemed to
arise to the individual and not to the family ;
4[
where the converted property has been the subject-matter of a partition (whether partial or
total) amongst the members of the family, the income derived from such converted property as is
received by the spouse 5*** on partition shall be deemed to arise to the spouse 5*** from assets
transferred indirectly by the individual to the spouse 5*** and the provisions of sub-section
shall,
so far as may be, apply accordingly:]
Provided that the income referred to in clause
or clause
shall, on being included in the total
income of the individual, be excluded from the total income of the family or, as the case may be, the
spouse 5*** of the individual.
Explanation 6[1].—For the purposes of sub-section