Law: Income Tax Act, 1961

Section: 64

[Indian Income Tax Act, 1961]...... Section. 64......Income-tax-------Total income---Inclusions in total income---Inclusion of income of spouse or minor child---Effect of Explanation to S.64---General rule that income of spouse or minor child should be included in total income of that spouse or parent whose income is greater---Change in individual in whose total income inclusion is made---Meaning of "necessary"---Term "necessary" implies compelling circumstances apart from benefit to Revenue---Indian Income Tax Act, 1961, S.64. Section 64 of the Income Tax Act, 1961, deals with the circumstances in which the income of the spouse or minor child is to be included in the income of the individual assessee who is the other spouse or the parent of the minor. Explanation 1 provides that the general rule is that the income of that spouse or the minor child should be included in the! income of that spouse or parent whose income is greater. This is followed by a mandate that where the income is so included in that of. one of the spouses or one of the parents of the minor "any such income arising in any succeeding year shall not be included in the total income of the other spouse or parent". This is followed by the Explanation that if the Income-tax Officer is satisfied after giving that spouse or parent an opportunity of being heard, and forms the opinion that "it is necessary to do so", he may include the income of the concerned spouse or minor in the income of the other spouse or parent. The scheme of the Explanation would indicate that the, general rule is that the spouse or the parent who has the greater income is the one in whose assessment the income of the other spouse or the minor should be included, and once so included, it shall continue to be included in the income of that spouse or parent in succeeding years until and unless the Income-tax Officer, after giving opportunity to the affected parties, forms the opinion that it is necessary to include it in the income of the other spouse or parent. There is no room for any ambiguity in the provision. The mandate of the Legislature is that once included in the income of either spouse or parent, it "shall" continue…

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