Clubbing Provision

Tax queries 639 views 4 replies

Balaji

Knowledge Seeker

317 Points Joined March 2009

I am told that a gift received from the mother-in-law by the daughter-in-law will be subject to clubbing provisions in respect of income derived from such sums gifted. Is this true? I would be grateful for an early response.Many thanks in advance. {On the contrary it seems that a gift received by the son-in-law from the mother-in-law will not attract the clubbing provisions for the income derived from such gift! Why this anamoly? I'm confused.Please help.}

Replies (4)

Sunil

Trader

2616 Points Joined August 2009

Of course either way clubbing provisions are attracted. The word mentioned in the act is 'spouse'. However, it is only for income from the amount gifted and not from the income on income from the amount gifted. If 50000 earns 10% interest i.e. 5000 The 5000 is clubbed but if the 5000 earns 500 the 500 is not clubbed.

dilip

Propritor

73 Points Joined September 2009

if shares in name of Father & Mother jointly (Father is first holder) is given to son after the death of father. will the capital gain received by son will be clubbed with mother ?is this amounts to inheritance / Gift / transfer ? though LTCG is exempt U/s 10(38) and Dividend is exempt U/s 10(34) will it be clubbed with mother or assessed under son (Son is not minor) if any case law or judgement please let me know

Shashank

Article

65 Points Joined February 2009

Only income from assets transferred to SON's wife is subject to clubbing u/s 64(1)(6)(Only direct income and capital gains from such asset is subject to clubbing.).Income from assets transferred to son-in-law is not subject to clubbing.

Balaji

Knowledge Seeker

317 Points Joined March 2009

Originally posted by :Shashank
"	Only income from assets transferred to SON's wife is subject to clubbing u/s 64(1)(6)(Only direct income and capital gains from such asset is subject to clubbing.).Income from assets transferred to son-in-law is not subject to clubbing.	"

Many thanks Shashank and Sunil.It seems the authorities don't believe in gender equality!!!