56(2)(x) and Cross Transfer in Clubbing

Direct Taxation

In case of cross transfer in clubbing and gift u/s 56(2)(x) contravene each other , then which provision would override ?

Varun Mulay

CA Final

★ 39K+

05-Jan-23 11:42

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Answers (3)

Best Answer

Rs 50000 is not to be included as income as it is received from a relative but if recipient earns any income from that amount then such income will be included in the income and clubbing provision will apply on such income earned

Vani

CA Final

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06-Jan-23 20:49

Please explain your question

Seemran Singh

CA Final

★ 4K+

05-Jan-23 11:45

Seemran Singh

Please explain your question

Eg :- Mr B an individual transfers an asset as gift to his brother's wife more than Rs 50,000 and Brother also transfers an asset valuing more than Rs 50,000 to B's wife. A ) Now , in clubbing , cross transfer provisions say that such transfer shall be clubbed in hands of deemed transferor. B.) As per section 56(2)(x) , brother's wife is covered in Definition of relative and Gift is exempt from such relatives. So , Point A and Point B coincide each other. Which provision shall overrule then ????

Thread Starter

Varun Mulay

CA Final

★ 39K+

05-Jan-23 12:07