Revocable transfer of assets: income is clubbed with the transferor when control or re-transfer rights are retained. Income from an asset transferred under a revocable transfer is clubbed with the income of the transferor and taxed in the transferor's hands, rather than in the hands of the recipient. A transfer is revocable where it provides for direct or indirect re-transfer of income or assets to the transferor, or gives the transferor a right to re-assume direct or indirect power over the income or asset. Transfer includes a settlement, trust, covenant, agreement, or arrangement.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Revocable transfer of assets: income is clubbed with the transferor when control or re-transfer rights are retained.
Income from an asset transferred under a revocable transfer is clubbed with the income of the transferor and taxed in the transferor's hands, rather than in the hands of the recipient. A transfer is revocable where it provides for direct or indirect re-transfer of income or assets to the transferor, or gives the transferor a right to re-assume direct or indirect power over the income or asset. Transfer includes a settlement, trust, covenant, agreement, or arrangement.
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