There are many instances where kids give rent to parents & it is an allowable expense..... By the above logic, can the court say that "It is the duty of parent to allow kids to stay in their home & hence cannot charge rent" ???
Re: Re: Court Arbitrary Stand
by Vimal on Oct 25, 2010 03:09 PM
Read carefully before commenting .... "It is the pious and moral obligation of the father to maintain the son during his minority or till he independently starts earning. If really there was an agreement between the father and son, such agreement would have come into existence before training the son by the father.
Bhupatihi's father spent more then 1 crore for his son to became a international Tennis player. Sports coaching is very expenxive it is not like engineering, MBBS, MBA. Court & Govt must understand this.
I do not understand why Mahesh raised this petition for this tax exemption. Because, in the event that his contention is accepted, then the 28.5 lakhs will be termed as the income of his father, and his father will have to pay tax on that amount. So what is the family gaining, except maybe few thousand rupees in the lower tax slabs, and that too assuming that Bhupathi senior did not have any other income then? Can someone enlighten me on why would the Bhupathis raise this petition?
Re: Tax liability
by Gautam Kapoor on Oct 25, 2010 02:35 PM
On the basis that his father was running the tennis academy in Oman, he would have most probably been a non-resident and hence not subject to income tax in india on overseas income.
But despite the fact about the Hindu law, i dont think there is anything in the Indian Income Tax law that permits an individual to claim a deduction for amounts incurred towards earning sports income. I am not sure if, for eg., expenses for racquets purchased by him are allowed as a deduction. If that were the case, everyone will start claiming a dedcution from their salary income for education expenses incurred in the past on the basis that if that hadnt been done, one wouldnt have been in a position to earn income...
Bhupatis are foolish. Waste of time for the court I'd say. Only the lawyer made money in this case...
Re: Tax liability
by Lalit Kumar on Oct 25, 2010 01:40 PM
Yes.... Bhupati will pay this amount to his father and he will get tax exemption then his father will buy probably a merc on the name of his acadamy and then he will get a tax exemption and then Bhupati will keep that merc with him which is actually registered on his father's company name.... this is one of the many ways here money will get route of tax exemption....
