https://www.taxtmi.com/caselaws?id=39860 A voluntary settlement creating a trust in favour of a spouse is treated as a gift because it transfers existing property, including a beneficial interest in property, without consideration. The creation of the trust itself is a transfer of property for Gift-tax Act purposes, and the fact that legal title vests in trustees does not prevent the spouse from receiving the beneficial interest. The spousal exemption under section 5(1)(viii) applies to that transfer, and section 5(3) does not require the spouse to have a disposing power over the gifted property for the exemption to operate. en-us Tue, 19 Mar 1974 00:00:00 +0530 Tue, 20 Apr 2010 17:14:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39860 A voluntary settlement creating a trust in favour of a spouse is treated as a gift because it transfers existing property, including a beneficial interest in property, without consideration. The creation of the trust itself is a transfer of property for Gift-tax Act purposes, and the fact that legal title vests in trustees does not prevent the spouse from receiving the beneficial interest. The spousal exemption under section 5(1)(viii) applies to that transfer, and section 5(3) does not require the spouse to have a disposing power over the gifted property for the exemption to operate. Case-Laws Income Tax Tue, 19 Mar 1974 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39860