Can income from assets transferred to spouse without adequate consideration be clubbed with the income of transferor-spouse?

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... adequate consideration, then income from such asset will be clubbed with the income of the individual ( i.e., transferor). Income from transfer of house property without adequate consideration will also attract clubbing provisions, however, in such a case clubbing will be done as per section 27 and not under section 64(1)( iv ). The clubbing provisions of section 64(1)( iv ) will apply eve .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ny. Will the income from the debenture purchased by Mrs. Kapoor from gifted money be clubbed with the income of Mr. Kapoor? ** Rs. 8,40,000 is transferred to spouse. Fund is transferred via gift ( i.e., without adequate consideration) and, hence, the provisions of section 64(1)( iv ) will be attracted. The provisions of clubbing will apply even if the form of asset is changed by the trans .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X