CAF-2 · Chapter 12 · Question 13 of 15
Mr. B transfers an income-generating asset to his minor child without adequate consideration. To which of the following minor children can the asset be transferred WITHOUT the income being clubbed back into Mr. B's hands?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) C) A married minor daughter
Explanation
The clubbing of income under Section 90 applies to transfers made to a spouse or minor child, specifically other than a married daughter. Therefore, a transfer to a married minor daughter is an exception, and the income would not be clubbed in the transferor's hands.
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