Comparison of Section 99 "Income of individual to include income of spouse, minor child, etc." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

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....se it determines when income arising to family members is taxable in the hands of the individual. Effective dates or enactment/decision date: Not stated in the document. Background & Scope Statutory hook: Clause 99 of the Income Tax Bill, 2025 (Old Version) headed "Income of individual to include income of spouse, minor child, etc." It addresses clubbing of income (inclusion of income of other persons in the total income of an individual). The clause specifies categories covered: spouse, son's wife, minor child and property converted into HUF property. It defines "substantial interest in a concern" for purposes of the spouse provisions and provides a formula for apportioning income where transferred assets are invested in business/par....

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....t: Not stated in the document. Interpretive principles indicated by the text: the Bill follows the traditional clubbing doctrine - to prevent tax avoidance by diverting income to family members or through intermediaries; it uses deeming and proportionate apportionment to capture economic benefit flowing from assets originally belonging to the individual. The presence of the formula signals an intent to proportionately attribute return where family members invest transferred assets in commercial ventures rather than merely passively holding them. Exceptions/Provisos Carve-outs explicitly stated: - Income of the minor child is excluded where it arises from manual work, or activities applying the child's own skill/talent/specialised know....

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.... Clause 99 of the Income Tax Bill, 2025 (Old Version) and Section 99 of the Income-tax Act, 2025 * Wording re: professional/technical income of spouse: - Bill (Clause 99): "(a)(i) ... but shall not exclude income solely attributable to the application of technical or professional knowledge, experience and professional qualification of the spouse." - Act (Section 99): "(a)(i) ... but shall not include income solely attributable to the application of technical or professional knowledge, experience and technical or professional qualification of the spouse." * Practical impact: The Bill language appears to negate a long-standing carve-out (by saying "shall not exclude" rather than "shall not include"). This is potentially transformative - i....

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....day of the tax year" to "the day for which A is being computed" introduces potential variability - the denominator may vary if A is computed for different dates, and could lead to differing inclusion amounts depending on valuation date. This affects proportional attribution where spouse/son's wife has invested and is carrying on business/partner interest; assessment administration and taxpayer computation become more complex and potentially contestable. * Minor drafting and paragraph-labelling differences: - The Bill contains typographical and cross-reference discrepancies (for example, clause (5)(b) refers to "sub-section (1)(d)" when the minor child rule was earlier placed in (1)(c); certain conjunctions/commas differ). * Practica....