Section 64 of Income Tax Act, 1961 (Clubbing of Income)

[Haresh Raithatha]

Issue : Does the provision of clubbing apply In a case where husband gives cash as gift to wife?

AI Summary

Does Section 64 of the Income Tax Act apply to a husband's cash gift to wife? Income inclusion clarified. A discussion on whether the clubbing provisions under Section 64 of the Income Tax Act, 1961, apply when a husband gifts cash to his wife. One participant suggests considering a Fixed Deposit Receipt (FDR) as a gift instead of cash. Another participant clarifies that according to Section 64(1)(iv), the income generated from assets transferred to a spouse without adequate consideration, such as interest on an FDR, will be included in the husband's income.