Taxation on expenses of personal nature???

Sumit Aggarwal (Querist) 15 March 2016 This query is : Resolved
Hello,

My query is regarding Income Tax:

Father is earning Rs 3 Lac per month (36 Lac per annum) and filling his ITR (Income Tax Return) accordingly.

Son is working in a company for last 2 years and earning Rs 15000 per month (1.8 Lac per annum). The earnings of son are not sufficient for his monthly expenditure.

Therefore, father decided to pay his son an amount of Rs 50000 per month (6 lac per annum) to meet his son's monthly expenditure.

My query is:

Earlier the son's earning was 1.8 lac per annum, therefore no income tax was levied upon him.

is the income tax payable by the son on the amount Rs 6 lac per annum, what the son is receiving from his father for expenditure?

If yes, father is paying to his son from his earnings and father has already paid income tax on that, if son would again pay income tax on that amount then it wouldn't be double taxation or the amount received by the son from his father is tax free?

please advise.

Thanks

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Guest (Expert) 15 March 2016
Contact the CA Club of this Same Forum to have a Reply from Practising Chartered Accountants

H.M.Patnaik (Expert) 15 March 2016
Seems to be a purely academic query .

When the Father's annual income has already suffered tax under the Act and the amount spent by son out of the returned income by way of family arrangement,the same will not be treated as income in the hands of the son for taxation purpose.