Clubbing provision under Wealth Tax Act

[Vikas Aggarwal]

Dear Sir/Madam,

Issue No-2: If a major married son transfer some wealth (Jewellery) to his father, acn it is clubbed in the hand of Son or value in the hand of father for Wealth tax purpose.  

Can gift deed required for same transfer.

Issue No-3:  If member of HUF gift (through gift deed) some wealth (Jewellery) to HUF, is this tranfer clubbed in the hand of member or HUF.

Thanks & regards,

CA Vikas Aggarwal

[CAGOPALJI AGRAWAL]

Issue 2- It would be taxable in the hands of Father.

 

Issue 3- The wealth would be taxable in the hands of member.

AI Summary

Clubbing provisions: transfer of jewellery by a major son is taxed in father's hands; HUF gifts taxed to member. A transfer of jewellery by a major married son to his father is taxable in the hands of the father; a gift of jewellery by a member to his HUF is taxable in the hands of the member. A question on whether a gift deed is required was raised but not answered.