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

  1. Income Tax
  2. Clubbing of Income of Other Persons
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Davneet Singh
Davneet Singh is a graduate from Indian Institute of Technology, Kanpur. He has been teaching from the past 7 years. He provides courses for Mathematics and Science from Class 6 to 12. You can learn personally from here https://www.teachoo.com/premium/maths-and-science-classes/.
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