Skip to content

CA Final · Direct Tax Laws & International Taxation · Income of Other Persons included in Assessee's Total Income

A flat is held jointly in the names of Kavita and her sister Lata. Income arising from it is included in the total income of Kavita's father under the provisions of the Income-tax Act, 2025 dealing with income of other persons. The Assessing Officer serves a notice of demand for the tax attributable to this income. What is the liability of Kavita and Lata?

Kavita and Lata are jointly and severally liable. Section 100 says that when an asset whose income is included in another person's total income is held jointly by more than one person, all of them can be made liable for the attributable tax on service of a demand notice.

  1. AEach is liable only for half of the attributable tax
  2. BOnly the elder of the two is liable
  3. CThey are jointly and severally liable for the attributable taxCorrect
  4. DNeither is liable, as the tax is levied on the father alone

Explanation

Section 100(b) states that where the asset is held jointly by more than one person, they are jointly and severally liable to pay the tax attributable to the included income. The demand follows service of notice by the Assessing Officer. An equal-share liability would be wrong because the section does not split the liability.

Did you get it right without looking?

One question tells you little. A timed set on Income of Other Persons included in Assessee's Total Income shows your real accuracy, how long you take and where you lose marks.

Practise Income of Other Persons included in Assessee's Total IncomeFree diagnostic mock

More Income of Other Persons included in Assessee's Total Income questions