If Mr. X gifts his dividend income of Rs.55000 to his friend Mr. Y.
As per Section 60 this income should be clubbed in hands of transferor,
i.e Mr.X
Would this be taxable in the hands of Y as well as per 56(2)(x) since he has received gift of >50000?
See, there are 2 things :
If you have any agreement or any other legal document signed with that person to whom you have transferred this dividend income , then the question of clubbing will come under view .
And if no such thing has been done , then it will be taxable in the hands of Mr.Y as gift .
CAclubindia
