Provisions Relating to Clubbing of Income under Income Tax Act, 1961

Albert Einstein has rightly said, “The hardest thing in the world to understand is the income tax.” Many a times a tax payer feels the need to club income of someone else with his income. This happens when he is planning to transfer any of his assets/ income to another person as a means of tax planning to avoid the income getting taxed in his hands. The outcome of such transfers is clubbing provisions under the Income Tax Act, 1961.