What is defined under section 60 of income tax act

 TRANSFER OF INCOME WHERE THERE IS NO TRANSFER OF ASSET (SEC 60)

Where there is a transfer of income by a person to another person without the transfer of the asset from which the income arises, such income shall be included in the total income of the transferor. It does not matter whether such transfer is revocable or not and whether this has taken place before or after the commencement of Income Tax Act.

Example Mr. A owns Debentures worth Rs 1,00,000 of ABC Ltd., (annual) interest being Rs. 10,000. On April 1, 2015, he transfers interest income to Mr. B, his friend without transferring the ownership of these debentures. Although during 2015-16, interest of Rs. 10,000 is received by Mr B, it is taxable in the hands of Mr. A as per Section 60.