Answer

1. F

   Facts

   Gifting assets to a spouse or minor child triggers Sec 99, Income-tax Act 2025 (old Sec 64) clubbing, income from gifted assets is clubbed with the donor's income. This is a common trap.

2. P

   Provisions and law

   • IT Act, Sec 92(2)(m) (old 56(2)(x)) | Sec 99 (old 64
3. A

   Analysis

   What works: Gift to an adult child (18+), no clubbing. Income from gifted assets is taxed in the child's hands at their slab rate (potentially much lower). Gift to parents, no clubbing. Gift to sibling, no clubbing. What doesn't work: Gift to spouse, income clubbed. Gift to minor child, income clubbed until age 18. Gift from HUF to Karta, complex, tax advice needed. Estate planning angle: Systematic gifting to adult children reduces future estate value (no estate duty currently, but potential future legislation) and creates a tax-efficient family income structure.

4. C

   Conclusion

   Talk to a Savvy for the exact next step on your case.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.