20 March 2014
Clubbing Provision section 64(2) says that when a member of HUF transfers any of his property to HUF for inadequate Consideration, then the income arising from such property would be clubbed in the hands of the member who transferred the property and not in the hands of the HUF. My question : if the property is transferred to HUF at a value equal to Stamp Duty Value, then would the clubbing provision be applicable or no ? As Stamp Duty Value is not an inadequate Consideration, can this section be invoked is the doubt. Please do clarify my above doubt.
CAclubindia
