If an individual transfer the something to the spouse. How wil it be distinguished that it is a gift or transfer. Because in case it is a gift then it will be non taxable but it is a transfer then it is to be clubbed in the income of spouse.
Thank you in advance.
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sec 56 read with sec 64
Replies (6)
If transfer made to spouse with or without consideration then 56 won't apply.. only clubbing provision applicable.
Since wife is included in the definition of relative Sec 56 will not be applicable and Sec 64 would come into picture in case of inadequate or nil consideration...!!!!!
Ok it means sec 56 is applicable only when it is specified that it is a gift
even if it is gift still section 56(2)(x) not applicable coz they are relative.
Ok but the term relatives used in the sec 56 include spouse too
No, it means Sec 56 not applicable in case of relatives ...& without consideration is a gift always no need to specified that it is gift
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