Total income to include income of any other person.
8. (1) The total income of any person, being a transferor, shall include the following,
namely:—
(a) any income accruing to any other person, by virtue of a transfer, whether revocable or not, without transfer of the asset from which the income accrues; or
(b) any income accruing to any other person, by virtue of a revocable transfer of an asset.
(2) The provisions of clause (b) of sub-section (1) shall not apply in a case where—
(a) any income accrues from an asset transferred to any trust, if the transfer is not revocable during the life time of the beneficiary of the trust; or
(b) any income accrues from an asset transferred to any other person, not being a trust, if the transfer is not revocable during the lifetime of such other person.
(3) In 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.
