44. Ram owns 500, 15% debentures of Reliance Industries Ltd. of 500 each. Annual interest of * 37,500 was declared on these debentures for P.Y. 2020-21. He transfers interest income to his friend Shyam, without transferring the ownership of these debentures. While filing return of income for A.Y. 2021-22, Shyam showed 37,500 as his income from debentures. As tax advisor of Shyam, do you agree with the tax treatment done by Shyam in his return of income? (a) Yes, since interest income was transferred to Shyam therefore, after transfer it becomes his income. (b) No, since Ram has not transferred debentures to Shyam, interest income on the debentures is not taxable income of Shyam. (c) Yes, if debentures are not transferred, interest income on debentures can be declared by anyone, Ram or Shyam, as taxable income depending upon their discretion. (d) No, since Shyam should have shown the income as interest income received from Mr. Ram and not as interest income earned on debentures