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
Income Tax
Clubbing of Income of Other Persons

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 11 years. He also provides Accounts Tax GST Training in Delhi and Pune.