The clubbing of income provision is designed to stop tax avoidance by preventing the transfer of assets or income to family members without adequate consideration. According to Section 99 of the Income-tax Act, 2025, clubbing of income involves specific situations where income earned by one person is included in the taxable income of another person.
However, many people mistakenly believe that they can save on taxes by transferring investments or money to their spouse. So, what’s the truth?
