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Law panel against tax relief for single parents

Press Trust of India  |  New Delhi 

The Commission is learnt to have decided against recommending exemption on the money deposited in a single parent's account as maintenance for a minor child in a divorce settlement case.

In its report to be submitted to the and the and High on Monday, the Commission is disinclined to recommend relief for such parents.

The issue was referred to it by the and High

At present, as per the laws, the interest on money deposited as maintenance amount for a minor is clubbed with the of the guardian.

The Commission, sources said, feels that if it recommends relief for such parents, it could open floodgates with similar requests from other quarters.

Also, it could lead to the loss of for the government, they said.

Referring the matter to the Commission, the and High had asked it to consider "as to whether the Act, 1961 requires amendment to create exception against clubbing of a minor's income accruing from maintenance money with either of the parent's income".

The court has said that as per its opinion, the circumstances of the minor having received maintenance money are different from say a minor in whose name some business has been started by either of the parents or who has been advanced some gift during the subsistence of marriage of parents.

"The matter is, therefore, forwarded to the Commission and the Ministry of Women and Child Development for consideration whether suitable amendments are required to be made in the Income Tax Act, 1961, to ensure that maintenance settled on minors is exempted from income tax or is treated differently," the court had said in last January.

The Commission's recommendations are not binding on the or the courts.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sun, March 19 2017. 13:48 IST