Spousal clubbing of income from transferred assets applies without adequate consideration and excludes separation arrangements. Income arising directly or indirectly to a spouse from assets transferred to the spouse by an individual is included in the transferor's total income where the transfer is made without adequate consideration and is not in connection with an agreement to live apart, subject to the stated statutory exception. The clubbing rule applies only where there is a transfer of an asset to the spouse, the marital relationship exists when the income arises, and the transfer is not supported by adequate consideration. The provision also applies on a proportional basis so that only the income attributable to the transferred asset is clubbed back and not the spouse's entire income.
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.
Spousal clubbing of income from transferred assets applies without adequate consideration and excludes separation arrangements.
Income arising directly or indirectly to a spouse from assets transferred to the spouse by an individual is included in the transferor's total income where the transfer is made without adequate consideration and is not in connection with an agreement to live apart, subject to the stated statutory exception. The clubbing rule applies only where there is a transfer of an asset to the spouse, the marital relationship exists when the income arises, and the transfer is not supported by adequate consideration. The provision also applies on a proportional basis so that only the income attributable to the transferred asset is clubbed back and not the spouse's entire income.
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