Diversion of income

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Fenil Shah (Querist)
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11 March 2014 I need help regarding a case... a property has been gifted by a grandmother to her grandson...the property generates income and a MOU has been signed that untill the grandmother is alive, the income generated will be transfereed to her and not the grandson....in whose hands should the income on property be taxed the grandmother or the grandson??

Does this lead to diversion of income?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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11 March 2014 it will be clubbed in the hands of grandson and if he is minor then in the hands of that parent which is earning higher income excluding this income.

Fenil Shah

Fenil Shah (Querist)
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11 March 2014 Can the grandson override title of such income ?

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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11 March 2014 no...as it is legally transfered via gift then how can he?

Fenil Shah

Fenil Shah (Querist)
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11 March 2014 So u mean to say, the MOU will be application of income and not diversion of income.. right?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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