Section 61 of ITA, 1961 : Section 61: Revocable Transfer Of Assets

Explanation using Example

Imagine Mr. Sharma, a wealthy individual, decides to transfer some of his assets to his son, with a condition that he can take the assets back whenever he wants (a revocable transfer). This includes a rental property that generates a monthly income. According to Section 61 of The Income-tax Act, 1961, even though the assets are currently in his son's name, the income from these assets, such as the rent from the property, is still considered Mr. Sharma's income for tax purposes. Therefore, the rental income must be included in Mr. Sharma's total income, and he is responsible for paying taxes on it.