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Clubbing of Income

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Nice course 2024-05-16

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Free Clubbing of Income tutorial, Clubbing of income means including the income of any other person in Assessee's total 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.What are the provisions regarding clubbing of income? Clubbing of Income of Major Child A major child is governed by the principles applicable to an individual up to 60 years of age. So, if your major child is earning income above Rs 2,50,000 (before any deduction), Then he is liable himself to file his income tax return. No clubbing of income provisions shall applyHow do you avoid clubbing of income? To avoid the clubbing of income of the husband and wife it is therefore recommended that the husband should not make any gift to the wife of any income producing assets so also the wife should avoid making gift to her husband so as to prevent clubbing of income.