Income from assets transferred to Daughter-in-law WAC be clubbed under sec 64(1)(vi)
This query is : Resolved
25 June 2025
64(1)(vi) Daughter-in-law
Sir
Can income from assets transferred to Daughter-in-law without adequate consideration be clubbed under section 64(1)(vi) with the income of transferor- i.e., father-in-law/mother-in-law?
Sir
As per section 64(1)(iv), if an individual transfers (directly or indirectly) his/her asset (other than house property) to his or her spouse otherwise than for adequate consideration, then income from such asset will be clubbed with the income of the individual (i.e., transferor). Income from transfer of house property without adequate consideration will also attract clubbing provisions, however, in such a case clubbing will be done as per section 27 and not under section 64(1)(iv).
Further can income from house property transferred to Daughter-in-law without adequate consideration be clubbed as per section 27 and not under section 64(1)(vi). with the income of transferor- i.e., father-in-law/mother-in-law (as allowed in section 64(1)(iv))?
Regards
K M Goyal
Sir
Can income from assets transferred to Daughter-in-law without adequate consideration be clubbed under section 64(1)(vi) with the income of transferor- i.e., father-in-law/mother-in-law?
Sir
As per section 64(1)(iv), if an individual transfers (directly or indirectly) his/her asset (other than house property) to his or her spouse otherwise than for adequate consideration, then income from such asset will be clubbed with the income of the individual (i.e., transferor). Income from transfer of house property without adequate consideration will also attract clubbing provisions, however, in such a case clubbing will be done as per section 27 and not under section 64(1)(iv).
Further can income from house property transferred to Daughter-in-law without adequate consideration be clubbed as per section 27 and not under section 64(1)(vi). with the income of transferor- i.e., father-in-law/mother-in-law (as allowed in section 64(1)(iv))?
Regards
K M Goyal
25 June 2025
Section 64(1)(vi) for Daughter-in-law: The clubbing provision for assets transferred to a daughter-in-law is specifically covered under Section 64(1)(vi) of the Income Tax Act. This section states that if an individual transfers (directly or indirectly) an asset to their son's wife (daughter-in-law) otherwise than for adequate consideration, the income arising from such asset shall be clubbed with the income of the transferor (father-in-law/mother-in-law).
The crucial distinction is that Section 27 makes the transferor the "deemed owner" of the house property itself when transferred to a spouse or minor child without adequate consideration. For all other assets (including house property when transferred to a daughter-in-law), Section 64(1)(vi) (and 64(1)(iv) for spouse) clubs the income arising from the asset with the transferor's income, but doesn't deem the transferor as the owner of that asset for all purposes.
Any other asset transferred to Spouse (without adequate consideration): Clubbing applies under Section 64(1)(iv) (income from the asset is clubbed with transferor's income).
Any asset (including house property) transferred to Daughter-in-law (without adequate consideration): Clubbing applies under Section 64(1)(vi) (income from the asset is clubbed with transferor's income). Section 27 does not apply in this case.
The crucial distinction is that Section 27 makes the transferor the "deemed owner" of the house property itself when transferred to a spouse or minor child without adequate consideration. For all other assets (including house property when transferred to a daughter-in-law), Section 64(1)(vi) (and 64(1)(iv) for spouse) clubs the income arising from the asset with the transferor's income, but doesn't deem the transferor as the owner of that asset for all purposes.
Any other asset transferred to Spouse (without adequate consideration): Clubbing applies under Section 64(1)(iv) (income from the asset is clubbed with transferor's income).
Any asset (including house property) transferred to Daughter-in-law (without adequate consideration): Clubbing applies under Section 64(1)(vi) (income from the asset is clubbed with transferor's income). Section 27 does not apply in this case.
27 September 2025
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