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Circumstances in which spouse clubbing not attracted u/s 64(1)(iv)
- If the assets are transferred before marriage
- If the assets are transferred for adequate consideration.
- If the assets are transferred in connection with an agreement to live apart.
- If on the date of accrual of income, transferee is not the spouse of the transfer or.
- If a property is transferred by a karta of HUF, gifting co-parcenary property to his wife.
- If property is acquired by the spouse out of pin money.
Liability of the transferee in respect of the income included in another person (Sec. 65)
Where income from the transferred asset is included in the income of transferor as per provisions of clubbing of income, the liability of the transferee will be as follows-
- Notice of demand: Notice of demand in respect of such income can be served upon the transferee.
- Liability to pay tax: On service of notice, the transferee shall be liable to pay that portion of tax levied on the transferor which is attributable to the income so included.
- Joint owners: Where the asset is transferred to joint owners, then the joint owners shall be jointly and severally liable to pay the tax which is attributable to the income, from the asset so included.
