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.


For example

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. 

  1. Income Tax
  2. Clubbing of Income of Other Persons
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Davneet Singh
Davneet Singh is a graduate from Indian Institute of Technology, Kanpur. He has been teaching from the past 8 years. He provides courses for Maths and Science at Teachoo. You can check his NCERT Solutions from Class 6 to 12.