Diversion of income

This query is : Resolved

Fenil Shah (Querist)
Follow

11 March 2014 I need help regarding a case... a property has been gifted by a grandmother to her grandson...the property generates income and a MOU has been signed that untill the grandmother is alive, the income generated will be transfereed to her and not the grandson....in whose hands should the income on property be taxed the grandmother or the grandson??

Does this lead to diversion of income?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

11 March 2014 it will be clubbed in the hands of grandson and if he is minor then in the hands of that parent which is earning higher income excluding this income.

Fenil Shah

Fenil Shah (Querist)
Follow

11 March 2014 Can the grandson override title of such income ?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

11 March 2014 no...as it is legally transfered via gift then how can he?

Fenil Shah

Fenil Shah (Querist)
Follow

11 March 2014 So u mean to say, the MOU will be application of income and not diversion of income.. right?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

11 March 2014 yes it is application of income as per MOU cos first income is rec by granson and then as per mou it goes to granny.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

bhavesh

CA Varun Gupta

Anoop KK

N N V Satish

kavita goel

Subscribe Now

Diversion of income

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA