Amended and updated notes on section 63 of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to “Transfer” and “revocable transfer” defined.
Chapter V (Sections 60 to 65) of the Income Tax Act 1961 deals with the provisions related to Income of other persons included in assessee’s total income. Section 63 of IT Act 1961-2023 provides for “Transfer” and “revocable transfer” defined.
Recently, we have discussed in detail section 62 (transfer irrevocable for a specified period) of IT Act 1961. Today, we learn the provisions of section 63 of Income-tax Act 1961. The amended provision of section 63 is effective for financial year 2022-23 relevant to the assessment year 2023-24.
In this article, you will learn detail of the provisions of section 63 of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962, regulations, notifications, circulars, orders and Press Release by CBDT, Income Tax Department and the Ministry of Law and Justice, Government of India.
Section-63: “Transfer” and “revocable transfer” defined
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.