Clubbing of income means adding the income of another person in the assessee's total income.
Few examples are :
- Clubbing of Spouse Income
- Transfer of income without transfer of asset
- Minor Income
Clubbing of income means adding the income of another person in the assessee’s total income. For example, if the husband passes on some income to his wife to reduce this tax burden then such income is clubbed in the income of the husband and is taxable in the hands of the husband. Under the Income Tax Act, a person has to pay taxes on his income.
If the husband creates FD in his wife’s name It will be taxable in his hands as per the slab rate applicable to him except in case of a separation.