Gift and Clubbing

Dear friends

Property(gift) received from Spouse(relative) is exempt from tax - sec 56         but i have a doubt...

whether clubbing povisions U/S 64(1)(iv) affect this??

 

Replies (6)

hi balaji

     if any income arrives from such property, such amount will be taxable in the hands of the spouse

This comes under the condition "Transfer of asset for inadequate consideration"

Dear friends,

Thanks for reply

Is there any possible way to receive property from spouse without tax and clubbing????

No agreement to live apart and not adequate consideration..

It is better if transfer takes place few days before marriage.. In that case the provisions relating to deemed ownership and clubbing does not attract.. Hence v can avoid tax in d hands of transferor...

But if a person transfers d same much before the marriage then he wil miss out on both house n spouse... Be careful.. He/she wil escape with the property.. ha ha ha....

Mr.Ahamed

Before Marriage - Gift(Relative) - is it possible?

No consideration ....

It wil depend on the indivdual's perception whether to gift or not b4 marriage.. If he/she is so confident that the benefitor wont run away with it then he/she can gift the same... Coz gifts in kind are not taxable till AY 09-10 to transferee and its not taxable to the transferor if clubbing provisions are not applcbl. Since the husband-wife relationship does not exist b4 marriage and gift of property at this time wil not attract clubbing provisions..

 Dont think abt Sec.56(2)(vi) - Taxation of Gifts (IOS chapter) here. Its applcbl only for cash gifts.

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