Transfer irrevocable for a specified period.

1. (1) 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 1. Clause (iv) omitted by Act 32 of 1971, s. 12 (w.e.f. 1-4-1972). 2. Clause (b) omitted by Act 26 of 1988, s. 20 (w.e.f. 1-4-1989). 8. Sub-sections (2) and (3) omitted by Act of 46 of 1986, s. 32 (w.e.f. 1-4-1988). 9. The Explanation omitted by s. 32, ibid. (w.e.f. 1-4-1988).
   • (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.
2. (2) 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. 63. “Transfer” and “revocable transfer” defined. —For the purposes of sections 60, 61 and 62 and of this section,(a) a transfer shall be deemed to be revocable if—
   • (i) it contains any provision for the re-transfer directly or indirectly 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 ; (b) “transfer” includes any settlement, trust, covenant, agreement or arrangement.

³ Ins. by Act 41 of 1972, s. 3 (w.e.f. 1-4-1962).

⁴ Subs. by Act 7 of 2017, s. 30, for “sub-clauses (iia) (w.e.f. 1-4-2018).

⁵ Ins. by Act 19 of 1968, s. 8 (w.e.f. 1-4-1968).

⁶ Ins. by Act 66 of 1976, s. 14 (w.e.f. 1-6-1976).

⁷ Ins. by Act 23 of 1986, s. 14 (w.e.f. 1-4-1987).