Section 63- “Transfer” and “Revocable Transfer” Defined

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The Income Tax Act, of 1961 is the main statute of Income Tax in India. It provides for levy, administration, collection, and recovery of Income Tax.

According to Section 63 of The Income Tax Act, 1961,

For the purposes of sections 60, 61 and 62 and 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) “transfer” includes any settlement, trust, covenant, agreement or arrangement.

As per this Section,

For the purposes of sections 60, 61, and 62 in this section,

A transfer will be known to be revocable if,

• It has any provision for the re-transfer directly or indirectly of all or any part of the income or assets to the transferor

• In any way, if it gives the transferor a right to re-assume power directly or indirectly over all or any part of the income or assets.

Any settlement, trust, covenant, agreement, or arrangement is included in “transfer”.