Clubbing of Income [Section 60 to 65]
( Income of Other Persons Included in Assessee's Total Income)

Clubbing of Income – Section 60 to 65

Clubbing of income refers to the inclusion of income earned by a taxpayer in the tax return of another person. This is done to prevent individuals from transferring their income to someone else in order to reduce their tax liability. The clubbing provisions are outlined in Sections 60 to 65 of the Income Tax Act.

Income of an Individual to Include Income of Spouse (Husband/Wife of the Taxpayer) - Clubbing of Income [Section 64]

1. Remuneration of Spouse from a concern in which the other Spouse has Substantial Interest [Section 64(1)(ii)]:

2. When an Individual is Assessable in respect of Income from Assets Transferred to Spouse [Section 64(1)(iv)]:

3. An Individual is Assessable in respect of Income from Assets Transferred to Son's Wife [Section 64(1)(vi)]:

4. An Individual Is Assessable In Respect Of Income From Assets Transferred To A Person For The Benefit Of Spouse [Section 64(1)(vii)]

5. An Individual Is Assessable In Respect of Income from Assets Transferred to a Person tor the Benefit of Son's Wife [Section 64(1)(viii)]

'Revocable Transfer of Assets' for Clubbing of Income (Section 61)

1. Examples of Revocable Transfer with different situations :

2. When a transfer is Revocable [Section 63]:

3. Section 61 not applicable, if the transfer is Irrevocable for a specified period [Section 62]:

Clubbing of Remuneration of Spouse from a Concern in which the other Spouse has Substantial Interest [Section 64(1)(ii)]:

1. No Clubbing if Remuneration is due to Technical or Professional Qualifications:

2. Where both Husband and Wife have Substantial Interest and both are getting Remuneration from the concern:

3. 'Substantial Interest' by an Individual - Meaning

4. When both Husband and Wife have Substantial Interest :

Clubbing of Income in respect of Income from Assets Transferred to Spouse [Section 64(1)(iv)]:

Clubbing of Income in respect of Income from Assets Transferred to Son's Wife [Section 64(1)(vi)]:

An Individual Is Assessable In Respect Of Income From Assets Transferred To A Person For The Benefit Of Spouse [Section 64(1)(vii)]

An Individual Is Assessable In Respect of Income from Assets Transferred to a Person tor the Benefit of Son's Wife [Section 64(1)(viii)]

Clubbing of Income of a Minor Child [Section 64(1A)]

1. Clubbing of Income of a Minor Child in the hands of Father or Mother -

2. Certain incomes of Minor Child Taxable in the hands of Minor Child only:

3. When Clubbing of Income of Minor Child is not Attracted -

4. Exemption under Section 10(32) in case of Clubbing of Income of a Minor Child -

Income from Self-acquired Property Converted to Joint Family Property and subsequent Partition [Section-64(2)]

1. Transactions are covered by Section 64(2) by an Individual , who is a member of HUF —

2. Clubbing of Income in the case of subsequent Partition of HUF :

3. Income is to be Clubbed but Income On Income is Not to be Clubbed:

4. 'Income includes Loss' for the purpose of Section 64.