Clubbing of income means including the income of any other person in Assessee's total income.
The Income-tax Act has specified certain cases where income of one person is statutorily required to be included in the income of another person if some conditions are satisfied. This inclusion is known as “Clubbing of Income”.
For Example, if a husband diverts some part of his income to his wife to reduce his tax burden. Then, such transferred income of a wife is added and taxed as income of husband only and not his wife.
The clubbing provisions are applicable even if there is no intention to reduce tax liability.