General law related to clubbing

Yes, rent income shall be clubbed with the income of transferor.
But income arising out of income earned on transferred assets has not to be clubbed.
Capital gain amount ko invest karne se jo income hogi wo clubbed nai hogi....
 

Originally posted by : abhinandan
	Eg- a house property is transferred to son's wife and she sells the house property and buys debentures, then the income of debentures shall be clubbed with income of transferor... now my question is in whose hands capital gain on transfer of house property is taxable and further if debentures are sold and then property is purchased and property is given on rent.. whether this rent will be clubbed with the income of transferor or not ?

Hi abhinandan, if hose property is sold by son's wife and she purchased the debenture, then interest income will be taxable in hand of son's wife. but capital gain will be taxable in hand of transferor.

Originally posted by : abhinandan
	Thanks vishal But further if debentures are sold and property is purchased and property is given on rent.... Whether this rent will be clubbed with the incone of the transferor Or not... Simply want to ask the chain.. Upto what extent clubbing of income is possible..??

if late debenture is sold then again house property is purchased, then if let out then rental income will be taxable in hand of son's wife.

Vishal, how can u agree with me when you are at wrong.

please read the clubbing provision.

While applying the provisions of sections 60 to 64, following points should be kept in mind: · All the clubbing provisions given in sections​ 60 to 64 are not applicable to second generation income, i.e., income arising from accretion to the transferred assets.

E.g., Mr. Raja gifted Rs. 1,00,000 to his wife, she purchased debentures from the gifted money and earned interest of Rs. 10,000. Now in this situation, Rs. 10,000 will be taxed in the hands of Mr. Raja. If Mrs. Raja purchased bonds worth Rs. 10,000 from the aforesaid interest income and earned Rs. 1,200 as interest on these bonds, then such interest on bonds being second generation income will not be clubbed with the income of Mr. Raja .

Vishal, now u are at correct.

Originally posted by : Vishal Goel
	While applying the provisions of sections 60 to 64, following points should be kept in mind: · All the clubbing provisions given in sections​ 60 to 64 are not applicable to second generation income, i.e., income arising from accretion to the transferred assets. E.g., Mr. Raja gifted Rs. 1,00,000 to his wife, she purchased debentures from the gifted money and earned interest of Rs. 10,000. Now in this situation, Rs. 10,000 will be taxed in the hands of Mr. Raja. If Mrs. Raja purchased bonds worth Rs. 10,000 from the aforesaid interest income and earned Rs. 1,200 as interest on these bonds, then such interest on bonds being second generation income will not be clubbed with the income of Mr. Raja .

If Mrs. Raja sale debenture & purchase house then house rent income shall be clubbed with the income of Mr. Raja.