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Income Tax Act 2025 · Other persons' income

Clubbing of Income — Income-tax Act 2025

When another person's income is taxed in your hands — income of a spouse, minor child or from transferred assets, and how to plan around it.

Chapter V of the Income-tax Act, 2025 contains the "clubbing" provisions — situations where income earned by another person is added to and taxed in your total income. Common cases include income arising to a spouse or minor child, and income from assets transferred without adequate consideration.

These rules exist to prevent tax avoidance by shifting income within the family. Understanding them is key to legitimate family tax planning.

Sections in this topic

§96
Section 96 of the Income-tax Act, 2025 — Transfer of Income Without Transfer of Assets (Clubbing of Income)
Transfer of income without transfer of assets
§97
Section 97 of the Income-tax Act, 2025 — Income Arising from Revocable Transfer of Assets
Chargeability of income in transfer of assets
§98
Section 98 of the Income-tax Act, 2025 — Meaning of "Transfer" and "Revocable Transfer" for Clubbing of Income
Section 98
§99
Section 99 of the Income-tax Act, 2025 — Clubbing of Income of Spouse, Minor Child and Others
Income of individual to include income of spouse, minor child, etc
§100
Section 100 of the Income-tax Act, 2025 — Liability of a Person for Tax on Income Clubbed in Another Person's Income
Liability of person in respect of income included in income of another person

Frequently asked questions

Is my minor child's income taxed in my hands?
Generally yes — a minor child's income is usually clubbed with the parent's income (with a small exemption), except income the child earns through their own skill or effort.
Disclaimer: Educational overview of the Income-tax Act, 2025 (effective 1 April 2026), not professional advice. Confirm your position with our team before acting.

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