If it is done for inadequate consideration, then clubbing is applicable and Income is taxable in the hands of transferor

 

Asset Transferred to Son’s wife. - Different types of Clubbing

 

 

 

Asset Transferred Used for Business by Transferee

Proportionate Income arising from business will be treated as total income of transferor

Proportionate Investment=Value of Asset Transferred/Total Investment 

as on first day of previous year

(Same Provisions as  Asset transferred to spouse )

 

  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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