Section-96: Transfer of income without transfer of assets

Section-96 : Transfer of income without transfer of assets

Section-96 seeks to provide that the income which is transferred to any other person without the transfer of the assets from which such income arises shall be clubbed in the income of the transferor but not the transferee (person to whom such income has been transferred). Learn to understand the section-96 as it is, it's help and useful links to follow.

Here onwards, "Act" refers to "Income Tax Act 2025"

1. Section-96 as per act

All income arising to any person by virtue of transfer,––

whether revocable or not, and whether effected before or after the commencement of this Act; and
where there is no transfer of assets from which such income arises, shall be chargeable to income-tax as the income of the transferor and shall be included in his total income.