Is clubbing of income mandatory?

There are many occasions when you may require to club income of someone else with your income. If you are planning to transfer any of your assets/income to another person as a means of tax planning to avoid the income getting taxed in your hands, hold on.

What are the circumstances under which income of one person can be clubbed with income of another?

​​​​​As per section 64(1)(vii), if an individual transfers (directly or indirectly) his/her asset otherwise than for adequate consideration to a person or an association of persons for the immediate or deferred benefit of his/her spouse, then income arising from the asset so transferred will be clubbed with the income …

When can a person be taxed in respect of income of other person?

When a taxpayer, while retaining the ownership of an asset, transfers the income from such asset to another person by an agreement or in any other way, such income will be taxable in the hands of the taxpayer. For example, Ankit owns a house property in Delhi. He has rented the property for Rs. 25,000 per month.

What are deemed income?

Deemed Income means Income which is actually not earned or received by Asseessee but Income Tax Act consider such as Income deemed to be received in India. Deemed Income on basis of Certain Past allowances of Deduction but Received Subsequently.

How much money can I give to my spouse?

Regardless of why the gift is being made though, the good news is that gifts between husband and wife (or between civil partners) are exempt from inheritance tax. There is usually no limit on how much can be given.

What are the income exempted under Income Tax Act?

Tax Free / Exempt Income Under Income Tax Act, 1961