Income of individual to include income of son's wife - (New) Section 99(1)(b) / (Old) Section 64(1)(vi)

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....r, shall include the income arising directly or indirectly, to the son's wife of such individual from assets transferred directly or indirectly on or after the 1st June, 1973, to her by such individual, otherwise than for adequate consideration; Essential Conditions For Section 99(1)(b) to apply, all the following conditions must be satisfied: 1. There must be a transfer of an as....

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.... transferred asset Only income traceable to the transferred asset is clubbed. Examples: • Rent from gifted house. • Interest from gifted fixed deposit. • Dividend from gifted shares. Such income is included in the transferor's total income. Proportional clubbing mechanism [Section 99(2)] Without this provision, taxpayers c....

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.... invested, or contributed as capital by the spouse or son's wife as on the first day of the tax year; • D = Total investment or total capital contribution, as the case may be, by the spouse or son's wife as on the first day of the tax year. Under Section 64(1)(vi) of the Income Tax Act, 1961 [ Upto 31.03.2026 ] • Any income which arises from assets transferre....