CLUBBING U/S 60 ?

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This query is : Resolved

AMIT (Querist)

20 July 2010

MR. A TRANFER ASSET TO SON'S WIFE > WITHOUT CONSIDERATION , INCOME ARISING DUE TO TRANFER RS.100000 WILL BE CLUBBED WITH MR. A

MR. A TRANFER ASSET TO WITHOUT CONSIDERATION " TO WOULD BE DAUGHTER IN LAW" NO CLUBBING OF INCOME

MY QUERY IS >

Q1. WHAT DOES THE TWO STATEMENT MEAN IN SIMPLE TERMS

Q2. WHAT IS CLUBBING IN THE MOST SIMPLE TERMS ? IS THAT A TOOL OF TAX PLANNING ?

CA. Anoop Gadia

CA. Anoop Gadia (Expert)

20 July 2010 if asset transfer before marriage of son u transfer to other person than this not clubbed because if you transfer assets more than Rs. 50,000 to other than relative than it is income of other person in there individual capacity.

but after marriage of son there is a relation n for tax planning some one can transfer asset to relative so in income tax clubbing provision are incorporated to reduce such type of tax planning.

2. yes we can use this as tax planning tool.

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)

20 July 2010 Clubbing provisions were introduced so that persons are not able to do tax planning by transferring assets to their relative without or for inadequate consideration.

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