What are allowances and how are they taxed?

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• How is interest on corporate bonds of public and private companies taxed?

  Interest on corporate bonds is taxable on accrual basis at slab rates. Since these are dematerialised and listed, there is no TDS and there is a possibility of capital gains arising from sale of the bonds which is taxed as per capital gains tax ...

• My spouse and I jointly own a house in which both of us have invested equally from individual and independent sources. Can we split the rental income received between the two of us to be taxed in individual hands?

  Yes, Rental Income received by each co-owner can be taxed proportionately and taxed in the hands of both independently as per your share in the said property.

• I have transferred my house property to my minor child who is not married. In whose hands will the income from the house property be taxed?

  As per section 27(i) of the IT Act, you shall be the owner of the house property and hence the income shall be taxed in your hands.

• Can rental income on a property be taxed in the hands of a person who is not a registered owner of the property?

  The income or receipt can be taxed as ‘income from house property’ only when you own the property and you are entitled to legally receive income from such property.

• Can the income of remuneration, commission and bonus received from a partnership firm by a partner be taxed as income from 'Salary'?

  No. It has to be treated as and taxed as income from Business and Profession, as a partner is not an employee, but a part-owner and a shareholder in the profits and losses of the business.