Income Tax Act, 2025
Section 9: The words “and” omitted by Act 67 of 1984, s. 17 (w.e.f. 11985).
9. The words “and” omitted by Act 67 of 1984, s. 17 (w.e.f. 11985).
10. The words “or minor child or both” omitted by Act 18 of 1992, s. 35 (w.e.f. 11993).
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1[(viii) to any person or association of persons from assets transferred directly or indirectly on or
after the 1st day of June, 1973, otherwise than for adequate consideration, to the person or association
of persons by such individual, to the extent to which the income from such assets is for the immediate
or deferred benefit of his son’s wife 2***.]
3[Explanation 1.—For the purposes of clause (ii), the individual in computing whose total income the
income referred to in that clause is to be included, shall be the husband or wife whose total income
(excluding the income referred to in that clause) is greater ; and where any such income is once included
in the total income of either spouse, any such income arising in any succeeding year shall not be included
in the total income of the other spouse unless the Assessing Officer is satisfied, after giving that spouse an
opportunity of being heard, that it is necessary so to do.]
Explanation 2.—For the purposes of clause (ii), an individual shall be deemed to have a substantial
interest in a concern—
(i) in a case where the concern is a company, if its shares (not being shares entitled to a fixed rate
of dividend whether with or without a further right to participate in profits) carrying not less than
twenty per cent of the voting power are, at any time during the previous year, owned beneficially by
such person or partly by such person and partly by one or more of his relatives;
(ii) in any other case, if such person is entitled, or such person and one or more of his relatives are
entitled in the aggregate, at any time during the previous year, to not less than twenty per cent of the
profits of such concern.
4* * * * *
5[Explanation 3.—For the purposes of clauses (iv) and (vi), where the assets transferred directly or
indirectly by an individual to his spouse or son's wife (hereafter in this Explanation referred to as “the
transferee”) are invested by the transferee,—
(i) in any business, such investment being not in the nature of contribution of capital as a partner
in a firm or, as the case may be, for being admitted to the benefits of partnership in a firm, that part of
the income arising out of the business to the transferee in any previous year, which bears the same
proportion to the income of the transferee from the business as the value of the assets aforesaid as on
the first day of the previous year bears to the total investment in the business by the transferee as on
the said day;
(ii) in the nature of contribution of capital as a partner in a firm, that part of the interest receivable
by the transferee from the firm in any previous year, which bears the same proportion to the interest
receivable by the transferee from the firm as the value of investment aforesaid as on the first day of
the previous year bears to the total investment by way of capital contribution as a partner in the firm
as on the said day,
shall be included in the total income of the individual in that previous year.]
6[(1A) In computing the total income of any individual, there shall be included all such income as
arises or accrues to his minor child 7[, not being a minor child suffering from any disability of the nature
specified in section 80U:]
Provided that nothing contained in this sub-section shall apply in respect of such income as arises or
accrues to the minor child on account of any—
(a) manual work done by him; or
to any person or association of persons from assets transferred directly or indirectly on or
after the 1st day of June, 1973, otherwise than for adequate consideration, to the person or association
of persons by such individual, to the extent to which the income from such assets is for the immediate
or deferred benefit of his son’s wife 2***.]
3[Explanation 1.—For the purposes of clause
in a case where the concern is a company, if its shares (not being shares entitled to a fixed rate
of dividend whether with or without a further right to participate in profits) carrying not less than
twenty per cent of the voting power are, at any time during the previous year, owned beneficially by
such person or partly by such person and partly by one or more of his relatives;
in any other case, if such person is entitled, or such person and one or more of his relatives are
entitled in the aggregate, at any time during the previous year, to not less than twenty per cent of the
profits of such concern.
4* * * * *
5[Explanation 3.—For the purposes of clauses
and
in any business, such investment being not in the nature of contribution of capital as a partner
in a firm or, as the case may be, for being admitted to the benefits of partnership in a firm, that part of
the income arising out of the business to the transferee in any previous year, which bears the same
proportion to the income of the transferee from the business as the value of the assets aforesaid as on
the first day of the previous year bears to the total investment in the business by the transferee as on
the said day;
in the nature of contribution of capital as a partner in a firm, that part of the interest receivable
by the transferee from the firm in any previous year, which bears the same proportion to the interest
receivable by the transferee from the firm as the value of investment aforesaid as on the first day of
the previous year bears to the total investment by way of capital contribution as a partner in the firm
as on the said day,
shall be included in the total income of the individual in that previous year.]
6[
In computing the total income of any individual, there shall be included all such income as
arises or accrues to his minor child 7[, not being a minor child suffering from any disability of the nature
specified in section 80U:]
Provided that nothing contained in this sub-section shall apply in respect of such income as arises or
accrues to the minor child on account of any—
manual work done by him; or