04 October 2010
if a person transfer an asset to his daughter's husband without adequate consideration than clubbing provision will be applicable or not and if not why.
05 October 2010
As per section 60 to 64 transfer of any asset without adequate consideration to a son's wife is taxable but transfer of any asset without adequate consideration to daughter's husband is not covered here so no tax liability will arise for transfer of any asset without adequate consideration to daughter's husband.
06 October 2010
Section 60 to 64 applies to matters, where income is transferred and asset is not transfered. Section 56 (vii) is the section, which deals with matters of transfer of assets without adequate consideration. There is no deemed income in case transferee is relative. Daughter's husband is the spouse of lineal descendant of transferor within the meaning assigned in the Explanation to clause (vi) of section 56 (vi). Hence, transfer of asset without consideration will not be a taxable event.
CAclubindia
