Report No. 57
5.11. Analysis of position in various situations.-
For the sake of convenience, we would, at this stage, like to summarise the position with reference to various situations as follows:-
Transfer In favour of wife or Child
| (a) | Transfer in favour of wife or child (whether or not with the object of transferring title to the wife or child) without adequate consideration. | Governed by section 64, Income-tax Act [Also see (g) below]. (No criminal liability unless the case falls within sections 415 to 424, Penal Code or sections 206-207 of that Code). |
| (b) | Transfer in favour of wife or child for consideration, but for a fraudulent purpose and not in good faith. | Governed by section 6(h)(2) and section 58, Transfer of Property Act. (Criminal liability if case falls within sections 415 to 424, Penal Code or sections 206-207 of that Code). |
| (c) | Transfer in favour of wife or child for consideration, and with genuine object of transferring title to the wife or child. | Not covered by any provision. (No criminal liability). |
| Transfer in favour of persons other than wife or child | ||
| (d) | (i) Transfer in favoure of a person other than wife child without consideration, but with the genuine object of transferring title and with no fraudulent purpose. | Not covered by any provision. (No criminal liability). |
| (ii) Transfer in favour of a person other than wife or child without consideration, ans without intent to transfer title, but with no fraudulent purpose | Governed by section 281A, Income-tax Act. [See (g) below]. (No Criminal liability). | |
| (iii) Transfer in favour of a person other than wife or child without consideration, with intent to transfer title, but for a fraudulent purpose and not in good faith | Governed by section 6(h)(2) and section 53, Transfer of Property Act (Criminal liability if case falls within section 415 to 424, penal Code or sections 206-207 of that Code). | |
| (iv) Transfer in favour of a person other than wife or child without consideration, without intent to transfer title for fraudulent purpose. | Governed by section 281A, Income-tax Act. [See (g) below]. Also section 6(h)(2) and section 59, Transfer of property Act. (Criminal liability if case falls within sections 415 to 424, Penal Code or sections 206-207 of that Code). | |
| (e) | Transfer in favour of person other than wife or child for consideration, with intent to transfer title, but for a fraudulent purpose and not in good faith. | Governed by section 6(h)(g) and section 53, Transfer of property Act, (Criminal liability if case falls within sections 415 to 424, Penal Code or sections 206-207 of that Code). |
| (f) | Transfer in favour of person other than wife or child with consideration but with genuine object of transferring ownership and with no fraudulent intent. | Not covered by any provision. |
| General | ||
| (g) | Transfer in favour of any person benami (i.e., without consideration and with no genuine intent to transfer). | Object of checking tax evasion substantially achieved by barring a suit instituted without informing the taxing authorities. See section 231A, Income-tax Act (inserted by Act 45 of 1972). |
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