First Income is computed in hands of transferee as if there is no clubbing.
All deductions/exemptions are available as applicable.
Then Clubbing is done in relevant head.
If it is Income from Salaries of transferee, it will be Income from Salaries for transferor as well
Steps to be followed
Compute income in the hands of recipient as if there is no clubbing (taken to account different exemptions / deductions)
Add it in the relevant head of the transferor.