Clause 7 - Total income to include income of any other person - Direct Taxes Code Bill, 2009

Total income to include income of any other person 7. (1) The total income of any person shall include the following income of any other person:- (a) any income transferred, whether revocable or not, to any other person without transferring the asset from which the income accrues; (b) any income accruing from an asset transferred to any trust, if the transfer is revocable during the life time of the beneficiary of the trust; and (c) any income accruing from an asset transferred to any other person, not being a trust, if the transfer is revocable during the lifetime of such other person. (2) For the purpose of this section,- (a) a transfer shall be deemed to be revocable if - (i) it contains any provision for the re-transfer, directly or indirectly, of the whole or any part of the income or assets to the transferor; or (ii) it, in any way, gives the transferor a right to re-assume power, directly or indirectly, over the whole or any part of the income or assets; (b) a transfer shall include any settlement, trust, covenant, agreement or arrangement.