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CA Intermediate · Taxation · Income of Other Persons included in Total Income of Assessee

Mrs. Nisha, a qualified chartered accountant, is employed as Head of Finance in Zenith Pvt. Ltd., where her husband holds 22% of the voting power. She earned a salary of Rs 6,00,000 in the tax year 2026-27. Her qualification is professionally relevant to the post, and no other person in the company has similar qualifications. What amount of her salary will be clubbed in her husband's total income?

Nothing is clubbed with the husband. Although he holds 22% voting power, which is a substantial interest, the wife's salary is excluded because she has a professional qualification and the remuneration is solely attributable to applying that expertise in the post she holds.

  1. ARs 6,00,000
  2. BRs 3,00,000
  3. CRs 1,32,000
  4. DNilCorrect

Explanation

Normally, remuneration of a spouse from a concern in which the other spouse has a substantial interest (20% or more of voting power) is clubbed. The exception applies when the spouse has technical or professional qualifications and the income is solely attributable to the application of that knowledge and experience. Nisha, a CA in a finance role, satisfies this, so nothing is clubbed. Rs 6,00,000 ignores the exception.

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