n NISM Certifications
X NISM Series X
Medium

When a house property is transferred to a daughter-in-law by father-in-law without adequate consideration, and it is let out, the rent received is taxable in the hands of the father-in-law.

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Daughter-in-law

  2. Father-in-law

    Correct answer

  3. C

    Mother-in-law

  4. D

    Son

Why this is the answer

According to Section 64(1)(vi) of the Income Tax Act, income from property transferred to a daughter-in-law without consideration is clubbed with the transferor's income, i.e., father-in-law.

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