a person is taxed in respect of income earned by him/her only. However, in
certain special cases income of other person is included (i.e. clubbed) in the
taxable income of the taxpayer and in such a case he will be liable to pay tax
in respect of his income (if any) as well as income of other person too.
provisions of clubbing of income generally gets attracted in following case of
Assets transferred by way of -
Gift by an individual
(Donor) to his/her spouse (Recipient)
Gift by Parents (Donor) to
Minor Child or Grandchildren or Daughter-in-law (Recipient)
note that above are some illustrations of clubbing of income in case of assets
transferred by way of gift and the same is not an exhaustive list.
Upon such assets transferred, any income earned
by the Recipient from the said gift shall be clubbed in the income of the