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Himanshu Garg   03 May 2025

Clubbing of income apply for transfer of property to major son

I have transferred property to my major son and he is earning rent from it .

Will it count under clubbing of income



 7 Replies

R.K Nanda (Advocate)     03 May 2025

Clubbing of which income?

kavksatyanarayana (subregistrar/supdt.(retired))     03 May 2025

Either rent income or any other income?

Himanshu Garg   03 May 2025

Rental income 

Dr. J C Vashista (Advocate )     04 May 2025

Of Course it is income from house property and subject to tax.

T. Kalaiselvan, Advocate (Advocate)     05 May 2025

If you have transferred this immovable property to your son by a registered deed then he is liable to pay the income tax out of the revenue derived from this property as applicable.

Vishesh K Sapra (Advocate Supreme Court (888-215-3399))     05 May 2025

Hi,

No, clubbing of income provisions do not apply when you transfer property to your major son. As per Sections 60 to 64 of the Income Tax Act, clubbing rules are designed to prevent tax avoidance through transfers to a spouse, minor child, or daughter-in-law without adequate consideration. However, income earned by a major child from assets legally transferred to them is taxable in their own hands, not yours. Therefore, your son’s rental income from the property you transferred is not clubbed with your income.    

For further assistance on this matter, please feel free to contact me at adv.vishesh@icloud.com.

Anna Joy   07 May 2025

Originally posted by : Crazy Cattle 3D Himanshu Garg
I have transferred property to my major son and he is earning rent from it .
Will it count under clubbing of income

No, clubbing of income does not apply when property is transferred to a major son; the rental income will be taxed in the son's hands. This is because Section 64 of the Income Tax Act covers transfers to a spouse or minor child, not a major child.


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