Is the point clear?
Only income is being transferred without transfer of the
assets.
So, in that case, whatever transactions he is doing, income
will be clubbed in his hands.
Income will be taxable, it will be clubbed in the hands of
the transferor.
This is the simple point.
Sir, suppose you are saying that transfer should be done.
I am saying that what is your concern?
Your concern is that transfer should be done.
Suppose I transfer.
I transfer the property.
Big B transfers the property to Junior Big B.
What will happen in that case?
Sir, what will happen in that case?
Tell me.
What should happen in that case?
Sir, try to understand.
What will happen?
See, what will happen in that case?
Two types of transfer.
Let's go to the market, friends.
Two types of transfer.
Revocable transfer.
Revocable transfer means the intention of the transferor is
wrong.
Revocable transfer means the intention of the transferor is
wrong.
Revocable means this transfer can be taken back from you at
any time.
A transfer which can be revoked which can be taken back
from you at any time if you satisfy some conditions.
The intention of the transferor is such that if some
conditions are not fulfilled, then I will take this asset
back from him.
Or after some time period,
I will take that asset back from you.
What is the second one?
The second one is the opposite.
Irrevocable.
What does irrevocable mean?
Irrevocable means as Shah Rukh Khan says, we live once, we
die once, love happens once, marriage happens only once in
life.
That is irrevocable transfer.
Irrevocable means either I will not transfer or if I
transfer once, then I will never take that property back.
Either I will not transfer or if I transfer, then I will
never take that property back.
Irrevocable transfer.
True transfer.
If it is a transfer, then it is like this.
Irrevocable transfer.
What is this revocable transfer?
Its intention is wrong.
It says that if some conditions are fulfilled,
I will take it back from you.
So in this case, assume that
Big B has transferred the property to Junior Big B.
Big B has estimated that maximum I will work for 5 years
and then I will take retirement.
For example, Big B has announced that I will work for 5
years and then
I will take retirement.
When I will take retirement, then my income of 100-200
crores will get over.
I will have only the income of 5 lakhs of rental house
property.
I am a senior citizen.
Super senior citizen.
My exemption limit will also increase in that case.
In that case, my income of 5 lakhs will get exempted.
Do you understand?
Now I have an income of 100 crores and I work in a TV
serial.
After 5 years, I will retire.
I will have only the income of 5 lakhs of rental house
property.
Even if I don't get the income of 5 lakhs,
I will reach the exemption limit with the help of rebate
and all.
My income will get covered in that case.
So in that case,
I won't have to divert my income.
So what I will transfer today,
I need to transfer my income today.
But after 5 years, when I retire,
I won't need it.
In that case, I will make a paper and write that
I am transferring my property to
Junior Big B.
But after 5 years,
I will take back this property.
After 5 years, when I retire,
I will get my rental income.
My exemption limit will be so high that my rental income of
5 lakhs will be exempted.
In this case, it is a revocable transfer.
Property will be returned to Amitabh Bachchan.
So in this case, the government also says that your
intention is wrong.
Your tax planning efforts are going on.
Now you have an income of 100 crores.
You will take a rent of 5 lakhs.
You will come in the bracket of 30%.
To divert that, you have transferred your property to a
revocable transfer.
So that revocable transfer will be done.
Abhishek will get his income.
He has an income of 0 rupees.
He will pay a rent of 5 lakhs there.
So that he will be exempted there also.
You have to show a transfer.
You have shown a revocable transfer.
You will take it back after 5 years.
In this case, your intention is wrong.
You will take it back after 5 years.
That is why this income will be clubbed in your hands.
Yes, but it is an irrevocable transfer.
You have given property to Abhishek forever.
Now whether you retire or not, you will never take property
from him again.
So in that case, whatever rental will come from there, all
that will go in the hands of the junior.
Nothing will be clubbed in Abhishek's hands.
This is the point, sir.
It is a revocable transfer.
So whatever income you earn, your intention is wrong.
You are transferring the property to divert the income.
You showed the property on the papers and it came to him.
I will take it back after 5 years when I need it.
In that case, your income will be taxable in the hands of
Big B.
It will be taxable in the hands of the transferer.
It is an irrevocable transfer.
Now this property is forever transferred to Junior Big B.
It will be treated in the same way as an owner treats a
property.
If the owner receives the rental, it becomes taxable in the
hands of the owner.
Who is the owner?
Junior Big B.
Big B has nothing to do with this property.
My dear, it will not happen.
Is the point clear, sir?
Come here.
Let's read it once.
What does it say?
Income arising from revocable transfer.
All the income arising to person by virtue of revocable is
to be included in the total income of the transferer.
This is it.
It has explained the meaning of revocable.
You can read it.
Okay, sir?
And see this irrevocable one.
Income from the transferred asset is not included in the
total income of the transferer provided transferer derives
no direct benefit from the income.
It is a simple thing.
It will be irrevocable.
It will be irrevocable during the lifetime.
I am not revoking it.
In the case of irrevocable transfer, there will be no club
in my hands.
If the transferer receives direct or indirect benefit from
such income, such income will be included.
Even the transfer may not be revocable during the lifetime
of the beneficiary.
It is a simple thing.
If you are receiving any benefit from that property, it
will be taxable in your hands.
But if it is irrevocable transfer and you do not receive
any benefit, in your hands, no income will be taxable.
This was the point so far.
Are the points clear?
Can I proceed, sir?
Life's problems are like a red light.
Let me give you some motivation.
These lectures are of our time.
Life's problems are like a red light.
If you are driving at high speed in life, your vehicle is
driving at high speed but you have to stop suddenly.
It spoils your speed.
Stop at that time.
It is wise to stop.
Stop.
Face it.
Have patience.
Wait for the green light.
Wait for your green light.
Believe me, if you have stopped at the red light, show your
speed at the green light.
Go at double speed from the previous speed.
Stop at the red light.
Take out your bad time from your life.
If someone is saying something to you, that you are like
this, you are like that, you didn't know this, say yes, I
made a mistake.
But when your time comes, show your speed in life.
Go so high, so far, that you don't even hear the dogs
barking.
Go very far in life.
Respect is the only thing that is successful in life.
You need bitterness, but as they say, with time, people
don't ask for goodness, they ask for status.
So work hard and become successful.
Do something like this in life. will do it, people will
give you an example.
Come here.
We were reading the chapter of clubbing.
We have not come to any motivational seminar.
We are reading the chapter of clubbing.
Come here.
In clubbing, the most common topics are that you have
transferred your income to your wife.
You have transferred income to your wife.
Three cases are made in this.
It is a simple thing.
Three cases are made that you have a company.
For example, you have a company.
You have paid remuneration to your wife.
You have given remuneration.
You have given salary.
In that case, the club will be in your hands.
The club will be there only when it does not have any
technical qualification.
For example, your wife is a sixth wheel.
You have made her the financial director of the company.
Is it objective? You have shown the salary of a finance
director of 5 lakhs per month.
Is she a sixth wheel? Is it possible? No.
You have a substantial interest in your company.
It is your company in a way.
You have more than 20% shareholding.
In that case, it will be accepted that the income is
diverging and nothing else is happening.
You are not paying your salary.
Or you have a lot of salary.
So, you have split that salary.
You are taking some and your wife is taking some.
This is the meaning of this.
If your salary is 10 lakhs per month, then you have split
it by 5 lakhs.
You are taking 5 lakhs.
Your wife is taking 5 lakhs.
You have given your wife the post of financial director.
Director of finance.
Group CFO of this type.
What is the qualification? Sixth pass or sixth wheel? Let's
say sixth wheel.
In that case, nothing happens.
It is seen that the income is diverging.
So, in that case, that income will be clubbed in your hands.
When you will pay your wife's salary, it will be clubbed in
your hands.
Yes, but assume that her qualification is this much.
In reality, her qualification is this much that she
deserves this much salary.
In that case, no clubbing provisions can be applied on you.
It is a matter of qualification.
The whole world bows down to a person.
You can make the biggest people bow down to you on the
basis of qualification.
An IAS officer has only one qualification.
Even the Prime
Minister stands in front of him and signs.
They show the photo to the Election Commission during the
elections.
When the candidates go to file their nomination, the photo
shows that even Mr.
Modi was standing and signing in front of the IAS officer.
Otherwise, does a person have the status in this country
that the Prime Minister stands in front of him and signs?
The whole world bows down to qualification.
You have the qualification.
You really deserve this much.
So, in that case, it is a simple thing.
There will be no clubbing.
But yes, if you don't have the qualification and you are
taking so much salary, then the transfer club will be the
income.
It is a simple thing.
Secondly, any income, it is a simple thing, income is being
accrued, income is being accrued, it is being arised.
Because of what? Assets are being transferred, but with
inadequate consideration.
Inadequate consideration or without consideration.
Without consideration, it is being transferred.
It is a simple thing.
Earlier, Mr.
Bachchan transferred his property to his son.
But what is happening now? Now
Mr. Bachchan has transferred property to Ms.
Jaya. He transferred property to Ms.
Jaya without consideration.
It is a simple thing.
He wants to divert the rental income.
Earlier, he was stuck in the matter of not transferring the
property.
Now, you have transferred the property.
But you have transferred the property without consideration.
You have not taken money from them.
Without consideration, you have transferred the property.
If you want to transfer, then do it with consideration.
Sell that property properly.
You should have an agreement of sale.
You should have a paper in which it would be written that I
have sold the property.
You are showing that you have transferred the property.
But there is no consideration.
Without consideration, it is inadequate.
If the property is worth 100 crores, then you are getting
25 lakhs as consideration.
Sir, this is not how it will work.
You are trying to divert the income.
You are showing the property.
You sold it.
You sold it for free.
Or if you have sold it, then you have received some money.
So, it is inadequate.
If you have sold a property worth 100 crores, then you have
received 25 lakhs.
What is the objective in that case?
To divert the income.
Ultimately, the objective is to divert the income.
So, in that case also, the income will be clubbed in your
hands.
This is the third point.
The third point is that you have done this to your spouse.