What is the meaning of Transfer irrevocable for a specified period? How Transfer and revocable transfer defined? Section 62 and 63 of Income Tax Act 1961

Transfer irrevocable for a specified period and Transfer and revocable transfer defined are defined under section 62 and 63 of Income Tax Act 1961. Provisions under these Sections are:

Section 62 of Income Tax Act "Transfer irrevocable for a specified period"

Section 62. (1) The provisions of section 61 shall not apply to any income arising to any person by virtue of a transfer-
(i) by way of trust which is not revocable during the lifetime of the beneficiary, and, in the case of any other transfer, which is not revocable during the lifetime of the transferee; or

(ii) made before the 1st day of April, 1961, which is not revocable for a period exceeding six years :

 

Provided that the transferor derives no direct or indirect benefit from such income in either case.

(2) Notwithstanding anything contained in sub-section (1), all income arising to any person by virtue of any such transfer shall be chargeable to income-tax as the income of the transferor as and when the power to revoke the transfer arises, and shall then be included in his total income.

 

Section 63 of Income Tax Act "Transfer" and "revocable transfer" defined"

Section 63. 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.

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