Deemed Owner under section 64(1)(iv)

Whether gift deeds are made?

No documents were prepared.  In whose name is the gift deed to be prepared and how to prepare?

1. Gift deed for gift from father to son/daughter
2. Second for son/&/ daughter to their mother.

Deemed Owner Provision Under Section 64(1)(iv) and Indirect Transfers

Yes, the income from the shares or property purchased by the wife using the funds transferred indirectly from the husband to her via the child can potentially attract the deemed owner provision under Section 64(1)(iv) of the Income Tax Act.

This provision states that if an individual transfers assets directly or indirectly to their spouse otherwise than for adequate consideration or in connection with an agreement to live apart, the income derived from such assets shall be included in the income of the transferor.

In your case, the husband indirectly transferred funds to his wife through his child. If the transfer is deemed to be a gift or without adequate consideration, the income from the shares or property purchased with those funds could be considered the husband's income.