income-tax

Clubbing of Income

Understanding Income Tax provisions for clubbing of income from spouse, child, and other family members.

GetYourCA Team
1 March 2025·Updated 9 April 20261 min read12.5K views

Clubbing of Income

What is Clubbing?#

Income of one person taxed in hands of another.

Applicability#

Spouse's Income#

  • Income from spouse's firm
  • Income from asset transferred to spouse
  • Not applicable: salary, commission

Minor Child#

  • Minor's income added to parent's income
  • Exemption: ₹1,500 per child

Exceptions#

  • Income from technical knowledge
  • Income from speculation
  • Dividend income (below certain limit)

Conclusion#

Income clubbing affects total tax liability.

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GetYourCA Team

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Disclaimer

We have taken utmost care to research and write this article for your information. However, tax laws are complex and subject to frequent changes. This article is for general guidance only and should not be considered professional advice. Individual circumstances vary significantly — what works for one person may not apply to another.

Before making any tax-related decisions, we strongly recommend consulting with a qualified Chartered Accountant or tax professional who can assess your specific situation. We do not accept any liability for decisions made based on this information.

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