Hi there. I am a finance professional and my work involves a lot of taxation. So, I would be able to help you with the meaning of clubbing of income in Income Tax. Clubbing of income in income tax refers to simply adding someone else’s income to your own income. This is done mainly for taxation. This provision to club the income is there in Section 64 of the Income Tax Act. Let me tell you more about clubbing of income below.
What is Clubbing of Income in Income Tax Act?
Here are the characteristics of clubbing of income in the Income Tax Act:
Income clubbing can be done among close family members and relatives. However, it can be done for anyone if the rules are applicable.
The clubbing of income in taxation law doesn’t just permit adding and showing someone’s income. It must abide by the rules and be relevant.
Any person cannot send the money they’ve earned to anyone and claim that it isn’t their income. Doing so will lead to miscalculations in tax liability.
This is all about what is clubbing of income in income tax. I hope you find the information helpful.
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What is Clubbing of Income in Income Tax?
disha
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21 days
2024-10-31T19:52:42+00:00 2024-10-31T19:52:43+00:00Comment
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