Income Tax Act 2025: Section 98 for Tax Year 2025-26

“Transfer” includes settlement, trust, or agreement. A transfer is “revocable” if it allows re-transfer or lets the transferor regain control over assets or income.

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“Transfer” and “revocable transfer” defined

[As per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]

For the purposes of sections 96 and 97, and this section,—

(a)“transfer” includes any settlement, trust, covenant, agreement or arrangement;

(b)a transfer shall be considered to be revocable, if––

(i)it contains any provision for the direct or indirect re-transfer 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.


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