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
Ask Download

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides GST and Tax E-filinf training in Delhi. Register now.