Income from assets transferred to son,s wife attract the provisions of S. 64(1)(vi) as per conditions below:-
- The taxpayer is an individual.
- He/she has transferred an asset after May 31, 1973.
- The asset is transferred to son‘s wife.
- The asset is transferred without adequate consideration.
In the case of such individuals, the income from the asset is included in the income of the taxpayer who has transferred the asset.
CLUBBING PROVISIONS AT A GLANCE:
| SECTION | NATURE OF TRANSACTION | CLUBBED IN THE HANDS OF | CONDITIONS/EXCEPTIONS | RELEVANT REFERENCE |
| 64(1)(vi) | Income from the assets transferred to son’s wife. | Individual transferring the Asset. | Condition: The transfer should be without adequate consideration. | Cross transfers are also covered [C.M.Kothari 49 ITR 107 (SC)] |