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Assessment of Clubbed Income under Income Tax Act.

1. Basic Principle of Assessment Clubbed income is assessed in the hands of the transferor (not the transferee) under the same head of income as it would have been taxed if received by the transferee. The transferor must include this income in their total income for tax computation. 2. Step-by-Step Assessment Process Identify Clubbing Provision Applicable Determine which section […]

Assessment of Clubbed Income under Income Tax Act. Read More »

Clubbing of Income – Section 60 to 65

1. Introduction to Clubbing of Income The Indian Income Tax Act, 1961, has provisions that prevent taxpayers from avoiding tax liability by transferring their income to their spouse, minor child, or any other person. This is known as the clubbing of income provisions, which are specified under sections 60 to 65 of the Income Tax