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Query on provision of clubbings

Tax queries 378 views 1 replies

 

can somebody plz clarify this

 

if an individual transfers assest to his spouse ( for not adequate considration) & the income ariseing on asset  is directly or indirectly benefited to the individual

but  what if:

1.there was an agreement to live apart

2.there was no agreement to live apart .

when transfer took place

wil income be clubbed in the hands of individual in both cases (1. & 2.) as he is geeting the benefit ?

thanks in advance ...!!

Replies (1)

Ms.Krina

First of all I advise you not to use SMS language here.  You are going to be a professional in the near future.  You language should be a refined one.

You know the answer but you have raised the question.

in case of situation (1) Income will not be clubbed as there is an agreement to live apart.

In case of situation (2) Income will be cluabbed as there is no agreement to live apart and the asset is transfered without adequate consideration.

Best Wishes

Sathikonda


CCI Pro

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