Check sibling questions

As per Section 60

If a person only transfers his income to some other person but doesn’t transfer the asset, Income will always be clubbed in the hands of transferor i.e. Person owning the asset.

It doesn’t matter whether transfer is revocable or not

 

Example

Mr. A gave a house on Rent to Mr B. He asked B to given rent of it to Mr A’s son

In this case, there is transfer of Income (Rent) but there is no transfer of Asset (House)

Hence, income will be taxable in the hands of Mr A even though it has been received by Mr A’s son

 

Transfer of Income when there Is No Transfer Of Assets - Different types of Clubbing

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 12 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.