TaxTMI 
TaxTMI 
Query for discussion Can deduction u/s 80C be claimed separately in hands of minor whose income is clubbed with one of parent u/s 64? My view: yes, because on reading of S. 64(1A) we find that 'total income' / such income of minor is to be clubbed, total income means GTI minus deductions under chapter VIA. There are some decisions of ITAT, Kolkata in favor of assessee. For example in case of Harish Khetan V ACIT ITA No. 2029/Cal/ 1996 for AY. 1993-94 order dt. 19.10.2001 passed by SMC Bench and then followed by other benches. Readers may refer to my articles in Taxmann on this issue. Readesr are also requested to submit query and own views, with reference of relevant provisions and case laws, as illustrated above to make this forum really "DISCUSSION FORUM". Readers views are soliceted.
Deduction u/s 80c - Minor
18 Jul 2009 
2 Replies 
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Deduction under section 80C is contested: whether a minor's deductions apply before income is clubbed under section 64(1A) is contested.
Whether a minor may claim Chapter VIA deductions before its income is aggregated under the clubbing provision is disputed. One position treats the minor as a separate assessee entitled to deductions so that a net amount is clubbed with the parent; another reads the clubbing phrase "all such income" as requiring inclusion of the minor's income without prior Chapter VIA deduction, making the issue one of statutory interpretation and sequencing of tax computation. (AI Summary)
Whether a minor may claim Chapter VIA deductions before its income is aggregated under the clubbing provision is disputed. One position treats the minor as a separate assessee entitled to deductions so that a net amount is clubbed with the parent; another reads the clubbing phrase "all such income" as requiring inclusion of the minor's income without prior Chapter VIA deduction, making the issue one of statutory interpretation and sequencing of tax computation. (AI Summary)