Definitions for "transfer" and "revocable transfer" in Clause 98 of the Income Tax Bill, 2025 Vs. Section 63 of the Income Tax Act, 1961

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....the inclusion of income of other persons in the assessee's total income. Similarly, Section 63 of the Income Tax Act, 1961, serves a comparable purpose, defining the terms "transfer" and "revocable transfer" for the purposes of sections 60, 61, 62, and itself. A comparative analysis of these provisions reveals both continuity and evolution in legislative intent and application. Objective and Purpose The legislative intent behind both Clause 98 and Section 63 is to prevent tax avoidance through the transfer of income or assets under arrangements that allow the transferor to retain control or benefit from the income or assets indirectly. By defining "transfer" and "revocable transfer," these provisions aim to ensure that income is taxed....

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....the Income Tax Act, 1961 Section 63 serves a similar purpose as Clause 98, providing definitions for "transfer" and "revocable transfer" for the application of sections 60, 61, and 62. The section deems a transfer to be revocable if it contains provisions for the re-transfer of income or assets or allows the transferor to re-assume power over them. The definition of "transfer" in Section 63 also includes any settlement, trust, covenant, agreement, or arrangement, mirroring the language in Clause 98. This consistency ensures that the scope of what constitutes a transfer remains broad and inclusive. Comparative Analysis A comparison between Clause 98 and Section 63 reveals significant similarities in their language and intent. Both provis....