the person had transferred an urban house plot in februrary 2011 in fevorur of his niece,which was not recoverable during her life time .his niece died on 14th march , he can get title of plot re transfer to his name on 14th april2011
how to treat this in wealth tax treatment. kindly reply me soon thanks in advance
INCOME IF ANY - FROM SUCH URBAN HOUSE PLOT... AFTER THE DEATH OF TRANSFEREE...(NIECE) SHALL BE ADDED TO INCOME OF TRANSFEROR....AS THE POWER TO REVOKE HAS ARISED ON THE DEATH OF TRANSFEROR...
WHETHER OR NOT THE TRANSFEROR GETS THE TITLE REGISTERED BACK IN HIS NAME OR NOT....
THE ASSET WILL BE ADDED TO WEALTH OF TRANSFEROR AND INCOME ( IF ANY FROM IT) WILL BE ADDED TO THE INCOME OF THE TRANSFEROR
BOTH IN THE ASSESSMENT YEAR OF DEATH OF TRANSFEREE.... HERE AY-2011-2012
Transfer of an asset under a Revocable transfer: Where an assessee has transferred an asset to any
other person
(a) under a ‘Revocable Transfer’, then from the very first day of the transfer, the clubbing provisions
will be attracted and the assessee will be deemed to be the owner of that asset.
(b.) However, if it is an ‘Irrevocable Transfer’, then no clubbing provisions shall apply to it, But in
case where the asset has been transferred under an ‘Irrevocable Transfer’ and power to revoke the
transfer arises to the assessee (even if the transfer is irrevocable), then clubbing provisions will get
attracted from the day on which the power to revoke the transfer arises, whether exercised or not
CAclubindia
