06 December 2023
If in case an assessee having income from certain investments, liquidates those investments, and gifts the money to spouse under a notarized gift deed. The spouse then invests the money and earns income from those investments. Would clubbing provisions be applicable in such a case or will this gift be included in taxable income?
06 December 2023
Basically Clubbing Provisions will apply only if Gift is given with revocable clause, which can be interpreted by plain reading of the Act. Gift to Relatives is exempt from Tax.
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