Revocable transfer rules govern when income is clubbed in the transferor's hands once revocation power arises. Income arising from a transfer is not clubbed in the hands of the transferor where the transfer is by way of trust or otherwise not revocable during the relevant lifetime, provided the transferor derives no direct or indirect benefit. A transfer is deemed revocable if it permits re-transfer of income or assets, or allows the transferor to re-assume power over them. If the transferor later acquires the power to revoke, the income becomes clubbed from that point, and actual revocation is not necessary.
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 rules govern when income is clubbed in the transferor's hands once revocation power arises.
Income arising from a transfer is not clubbed in the hands of the transferor where the transfer is by way of trust or otherwise not revocable during the relevant lifetime, provided the transferor derives no direct or indirect benefit. A transfer is deemed revocable if it permits re-transfer of income or assets, or allows the transferor to re-assume power over them. If the transferor later acquires the power to revoke, the income becomes clubbed from that point, and actual revocation is not necessary.
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