Section 98
Section 98: meaning of "transfer" and "revocable transfer"
Section 98 defines two terms that are central to the clubbing rules in Sections 96 and 97: what counts as a "transfer", and when a transfer is treated as "revocable."
What Section 98 says
For the purposes of Sections 96 and 97 (and this section itself), "transfer" includes any settlement, trust, covenant, agreement or arrangement.
A transfer is deemed to be revocable if it contains any provision for the direct or indirect re-transfer of the whole or any part of the income or assets to the transferor, or if 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.
Frequently asked questions
Does "transfer" under this section only mean a sale?
No - it is defined broadly to include any settlement, trust, covenant, agreement or arrangement, not just a sale or conveyance.
What makes a transfer "revocable" under Section 98?
A transfer is revocable if it lets the transferor get back, directly or indirectly, the whole or part of the income or assets, or gives the transferor a right to reassume power over the whole or part of the income or assets.
Related sections
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Get clarity on clubbing of income rules from our tax teamLast updated 9 September 2026