Gift & clubbing of income
This query is : Resolved
17 November 2014
Husband gifts Rs. 10-10 lakhs to his wife & major son through cheque by preparing the "Gift Deed". Wife & son invested the gift amount in the "Fixed Deposit" & "Traded in Share market". Now the question is
1) Whether clubbing of income(i.e. interest on FD & STCG) is applicable in both cases?
2) If yes, how can we restrict clubbing of Income ? please show the ways
3) If in the gift deed, husband clearly writes that the income generates from the gift is of "Donee" only and clubbing will be done. So is it possible?
Thanks in advance for the solutions.
1) Whether clubbing of income(i.e. interest on FD & STCG) is applicable in both cases?
2) If yes, how can we restrict clubbing of Income ? please show the ways
3) If in the gift deed, husband clearly writes that the income generates from the gift is of "Donee" only and clubbing will be done. So is it possible?
Thanks in advance for the solutions.
17 November 2014
It will attract clubbing provisions.
The SPV could be, let the son start a business for which Father can advance interest free LOAN.
The SPV could be, let the son start a business for which Father can advance interest free LOAN.
19 November 2014
But as per sec. 61 if husband gifts for the whole lifetime and will not have any right on the gift amount, then also clubbing of interest is applicable?
20 November 2014
Revocable transfer of assets.
61. All income arising to any person by virtue of a revocable transfer48 of assets shall be chargeable to income-tax as the income of the transferor and shall be included in his total income.
Now what is your query?
61. All income arising to any person by virtue of a revocable transfer48 of assets shall be chargeable to income-tax as the income of the transferor and shall be included in his total income.
Now what is your query?
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