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Gift from Spouse

C.Balaji (Learner) (1867 Points)

23 January 2010

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??

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

No agreement to live apart and not adequate consideration..

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24 Replies

CA.G.Muguntha Narayanan (Internal Auditor at TVS Motors) (2195 Points)
Replied 23 January 2010

no 64(a)(iv) does not affect this. the only possibility is that property must be transferred before marriage

C.Balaji (Learner) (1867 Points)
Replied 23 January 2010

Mr.Mukund

i think Sec 64(1)(iv) do affect gift from spouse(property)

Shudhanshu Agrawal (Business) (2570 Points)
Replied 23 January 2010

According to me if any gift is given to the wife by husband without or inadequate consideration then income generated by the wife using that gift shall be clubbed in the income of the husband. Except exempted gifts.

Suchitra (Articled Assistant) (26 Points)
Replied 23 January 2010

sec 64(1)(iv) is for other than house property.

C.Balaji (Learner) (1867 Points)
Replied 23 January 2010

s..Suchitra i agree with you.....

What about Property transferred to Spouse?

Is there any way to gift property without attracting tax and clubbing provisions?

as I already said No agreement to live apart and not adequate consideration.

Property does not only mean House property, any other asset generating income in future..

Suchitra (Articled Assistant) (26 Points)
Replied 23 January 2010

as per sec 64 (1)(iv), when an individual transfers any asset other than house property to his spouse otherwise than for adequate consideration or condition to live apart, then income arising from such transferred asset shall be clubbed in the hands of the individual. so property can be transferred without since the clubbing provision do not apply for house property

Suchitra (Articled Assistant) (26 Points)
Replied 23 January 2010

so property can be transferred without tax liability* since the clubbing provision do not apply for house property

Shudhanshu Agrawal (Business) (2570 Points)
Replied 23 January 2010

Section 64(1)(iv) do not apply to house property.

C.Balaji (Learner) (1867 Points)
Replied 23 January 2010

agree with you all.... but what about property other than HP?

Shudhanshu Agrawal (Business) (2570 Points)
Replied 23 January 2010

They all will be covered under section 64(1)(iv). Let me tell you what does section 64(1)(iv) says:

Where an asset (other than house property) is transferred by an individual to his spouse directly or indirectly, otherwise than for adequate consideration or in connection with an agreement to live apart, any income from such asset is deemed to be the income of the transferor.

I hope now your doubt will be cleared.

C.Balaji (Learner) (1867 Points)
Replied 23 January 2010

so No way of escaping from tax and/or clubbing - right Mr.shudhanshu.....

C.Balaji (Learner) (1867 Points)
Replied 23 January 2010

so, No way of escaping from tax and/or clubbing, if asset is transferred to spouse- right Mr.shudhanshu.....

Shudhanshu Agrawal (Business) (2570 Points)
Replied 23 January 2010

yeah, because the person who have created Income Tax are our Guru....unse khuch nahi bachata...no way u can save it

C.Balaji (Learner) (1867 Points)
Replied 23 January 2010

One more thing I have read somewhere that

Income from a house transferred by one spouse to other spouse without adequate consideration or not in an agreement to live apart... "Deemed Owner" provisions will apply and not "clubbing" provisions....

what does it mean???