Clubbing

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

12 July 2012 if son transfers his income to his parents than whether clubbing provision apply???
can he be exempted from clubbing if gift deed is prepared and transfer become irrevocable??

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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12 July 2012 Clubbing provisions DO NOT apply when an individual gifts an asset to his parents and the parents earn income from such asset.

Income from such asset is taxable in the hands of the parents.

Querist : Anonymous

Querist : Anonymous (Querist)

12 July 2012 for transferring assets is gift deed is required??

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