Normally, a person is taxed in respect of income earned by him only. However, in certain special cases income of other person is included (i.e. clubbed) in the taxable income of the taxpayer and in such a case he will be liable to pay tax in respect of his income (if any) as well as […]
Do any clubbing provisions exist in case of transfer of income without transfer of asset?
As per section 60, if a person transfers income from an asset owned by him without transferring the asset from which the income is generated, then the income from such an asset is taxed in the hands of the transferor (i.e., person transferring the income). E.g., Mr. Raj has given a bungalow owned by him […]
Do any clubbing provisions exist in case of a revocable transfer?
Revocable transfer is generally a transfer in which the transferor directly or indirectly exercises control/right over the asset transferred or over the income from the asset. As per section 61, if a transfer is held to be a revocable, then income from the asset covered under revocable transfer is taxed in the hands of the […]
Are there any situations in which the clubbing provisions do not apply in case of income from assets transferred to spouse?
The clubbing provisions of section 64(1)(iv) are not applicable in the following situations: If the transfer of asset is for adequate consideration; If the transfer of asset is in connection with an agreement to live apart; If the asset is transferred before marriage, no income will be clubbed even after marriage, since the relation of […]
Will any clubbing provision apply in case of transfer of asset to Hindu Undivided Family (HUF) by its member?
As per section 64(2), when an individual, being a member of HUF, transfers his property to the HUF otherwise than for adequate consideration or converts his property into the property belonging to the HUF (it is done by impressing such property with the character of joint family property or throwing such property into the common […]