Law Commission Submits Report New Report

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The Punjab and Haryana High Court, while dealing with the case Payal Meehta v. Sanjay Sarin, 2016 by its judgment and order dated 27.01.2016 referred the matter to the Law Commission of India for consideration as to whether the provisions of Section 64(1A) of the Income Tax Act, 1961 require an amendment to provide for exemption from clubbing of minor’s income accruing by way of interest on the amount deposited by one of the parents of the minor child as maintenance, at the hands of parent/guardian under an order of the court. The plea taken in this case is that the interest on the amount of maintenance deposited in the name of minor child should not be subjected to tax.

In view of the above, the Commission examined the various provisions of the Income Tax Act, 1961 including legislative history of Section 64(1A), Report of the Dr Raja J Chelliah Committee and case laws on the subject and submitted its Report No. 265 titled, “Prospects of Exempting Income arising out of Maintenance Money of Minor”, to the Government on 20.03.2017.

In para 11 of the Report, the Law Commission has recommended that income earned by way of interest on the amount of maintenance deposited in favour of the child does not require to be exempted from being clubbed with the income of the parent/guardian; as such exemption, if granted, would open flood gates of tax evasion and would defeat the very object of inserting the provisions of Section 64(1A) of the Income Tax Act, 1961.

The Twenty-first Law Commission was constituted through a Government Order with effect from 1st September, 2015. It has a three-year term, ending on 31st August, 2018. The Commission presently comprises of the following:-

Dr. Justice Balbir Singh Chauhan Chairman
Mr. Justice Ravi R. Tripathi Member
Prof.(Dr.) S. Sivakumar Member
Member
Dr. Sanjay Singh Member-Secretary
Shri Suresh Chandra, Law Secretary Member(Ex-Officio)
Dr. G. Narayana Raju, Secretary (Legislative) Member(Ex-Officio)
Prof. (Dr.) Bimal N. Patel Member (Part-time)
Shri Satya Pal Jain Member (Part-time)
Shri Abhay Bharadwaj Member (Part-time)

 

First Law Commission 1955-58 Mr. M. C. Setalvad
Former Attorney General of India
Second Law Commission 1958-61 Mr. Justice T. V. Venkatarama Aiyar.
Third Law Commission 1961-64 Mr. Justice J. L. Kapur
Fourth Law Commission 1964-68 Mr. Justice J. L. Kapur
Fifth Law Commission 1968-71 Mr. K. V. K. Sundaram, I. C. S.
Sixth Law Commission 1971-74 Mr. Justice Dr. P. B. Gajendragadkar
Seventh Law Commission 1974-77 Mr. Justice Dr. P. B. Gajendragadkar
Eighth Law Commission 1977-79 Mr. Justice H. R. Khanna
Ninth Law Commission 1979-80 Mr. Justice P. V. Dixit
Tenth Law Commission 1981-85 Mr. Justice K. K. Mathew
Eleventh Law Commission 1985-88 Mr. Justice D. A. Desai
Twelfth Law Commission 1988-91 Mr. Justice M. P. Thakkar
Thirteenth Law Commission 1991-94 Mr. Justice K. N. Singh
Fourteenth Law Commission 1995-97 Mr. Justice K Jayachandra Reddy
Fifteenth Law Commission 1997-2000 Mr. Justice B. P. Jeevan Reddy
Sixteenth Law Commission 2000-2001
2002-2003
Mr. Justice B. P. Jeevan Reddy
Mr. Justice M. Jagannadha Rao
Seventeenth Law Commission 2003-2006 Mr. Justice M. Jagannadha Rao
Eighteenth Law Commission 2006-2009 Dr. Justice AR Lakshmanan
Nineteenth Law Commission 2009-2012 Mr. Justice P. V. Reddi
Twentieth Law Commission 2012-2013
2013-2015
Mr. Justice D. K. Jain
Mr. Justice A. P. Shah

 

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