Clubbing of income means Income of other person is included in assessee's total income, for example: Income of husband which is shown to be the income of his wife is clubbed in the income of Husband and is taxable in the hands of the husband. As per the Income Tax Act, a person cannot transfer his income or an asset which is his one of source of his income to some other person or in other words we can say that a person cannot divert his income to any other person and say that it is not his income. If he does so. the income shown to be earned by any other person is included in the assessee’s total income and the assessee has to pay tax on it.
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