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

Step-1 

Compute income in the hands of recipient as if there is no clubbing (taken to account different exemptions / deductions)

Step-2 

Add it in the relevant head of the transferor. 

  1. Income Tax
  2. Clubbing of Income of Other Persons
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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