Amended and updated notes on section 62 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 irrevocable for a specified period.
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 62 of IT Act 1961-2023 provides for transfer irrevocable for a specified period.
Recently, we have discussed in detail section 61 (revocable transfer of assets) of IT Act 1961. Today, we learn the provisions of section 62 of Income-tax Act 1961. The amended provision of section 62 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 62 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-62: Transfer Irrevocable for a Specified Period
Section 62(1) of Income Tax Act
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.
Section 62(2) of Income Tax Act
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.