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Definition of revocable transfer
Types of Transfer of Asset
There are 2 types of transfer
- Revocable Transfer
- Irrevocable Transfer
| REVOCABLE TRANSFER | I RREVOCABLE TRANSFER |
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As per Section 63 A transfer is revocable if
(take back the asset)
Such retransfer or reassuming power may be
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A transfer which is not revocable is called irrevocable transfer Permanent transfer is called irrevocable transfer
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QUESTIONS
State what type of transfer?
A Gifted Property to B, B Can Give Back To A
View AnswerTransferee can retransfer the assets so it is a Revocable Transfer
A Gifted Property To B But Income Continues To Be Earned By A
View AnswerA Can Reassume Power Over Income, hence it is a revocable transfer
A Gifted Property To B but property can be taken over by A anytime
View AnswerA Can Reassume Power Over Property, hence it is a Revocable transfer
-ea-
Transfer is for Limited Perio d
View AnswerTransferor Can Reassume Power, hence it is a Revocable transfer
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A Gifted Property To B B Gifts Back To C Who Gives It To A
View AnswerEven Indirect Transfer covered. So it is a Revocable Transfer
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A Gifted Property To B . B Gifts Half Back To A
View AnswerEven part Transfer Covered, so it is a revocable transfer
-ea-
A sells property to B.,
View AnswerIt is irevocable transfer
Applicability of Clubbing (Section 61 and Section 62)
Revocable Transfer
If it cannot be revoked during lifetime of transferee (beneficiary in case of trust), then there is no clubbing
Otherwise clubbing will be applicable and it would be taxed in the hands of transferor
Irrevocable Transfer
Transfer which is not revocable is called irrevocable transfer
For example:-A sells asset to B. It becomes B’s property and A cannot take it back.
Hence it is an irrevocable transfer
No clubbing is done in this case.
Q2 Complete the following table
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Case |
A Gives Property To B |
Types Of Transfer |
Whether Clubbing Do |
Amount Taxable In Hands Of |
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1 |
For Ever |
|
|
|
|
2 |
For Lifetime Of B |
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|
|
|
3 |
For 5 Years |
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|
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View Answer
|
Case |
A Gives Property To B |
Types Of Transfer |
Whether Clubbing Do |
Amount Taxable In Hands Of |
|
1 |
For Ever |
Irrevocable |
No |
B |
|
2 |
For Lifetime Of B |
Revocable |
No |
B |
|
3 |
For 5 Years |
Revocable |
Yes |
A |
