Mr. Gagan, a Classical singer of Bengal and his wife Mrs. Rashmi furnish the following information relating to the A.Y. 2025-26. ₹ 1 Income of Mr.…

Computation of Taxable income of Mr. Gagan for A.Y. 2025-26 Particulars ₹ Professional income (Classical singer) 5,65,000 Income of minor son - Gaurav Income from winning singing reality show on T.V. Nil Income derived by a minor child from any activity involving application of his/her skill, talent, specialized knowledge and experience is not to be included in the hands of parent. Hence,2,50,000 earned by minor son Gaurav from reality show on TV would not be included in the income of either parent. Cash gift received by Gaurav from friend of Mr. Gagan on winning the show Nil The cash gift received by his minor son Gaurav (not on account of her skill) from his friends would not be taxable, since its value does not exceed - 50,000. Income of minor married daughter – Kavita Interest income on deposit with XYZ Pvt. Ltd. 40,000 Less: Exemption under section 10(32) [Since Mr. Gagan is paying tax under default tax regime, exemption u/s 10(32) would not be available] - (Income of minor daughter would be included in the hands of Mr. Gagan, since his income, before including minor daughter's income, is higher than his wife's income). Taxable Income 6,05,000 Computation of Taxable income of Mrs. Rashmi for A.Y. 2025-26 Particulars ₹ Salary income (computed) 3,80,000 Loan received from XYZ Pvt. Ltd. Nil [Such loan amount would not be considered as deemed dividend under section 2(22)(e), even though Mrs. Rashmi has substantial interest (holding 20% shares or more) in the XYZ Ltd., a closely held company, since the company does not have any accumulated profits on account of losses incurred in last 2 years from inception] Taxable Income 3,80,000