CLUBBING PROVISION

[Brijgopal kankani]

I WANT TO TRANSFER MY INCOME TO WIFE/PARENTS AS A GIFT BUT ACCORDING TO CLUBBING PROVISION OF INCOME TAX ACT, IT WOULD BE TAXABLE IN MY HAND THAN MY QUESTION IS WHAT CAN I DO SO THAT INCOME NOT TAXABLE IN MY HAND OR CLUBBING PROVISION WOULD NOT ATTRACT.

AI Summary

Gifting Income to Spouse or Parents: Tax Implications Explained Under Clubbing Provisions of the Income Tax Act An individual inquired about transferring income to their spouse or parents as a gift without it being taxable under the clubbing provisions of the Income Tax Act. A respondent clarified that the income gifted would initially be taxable to the individual. However, once the amount is transferred as a gift, the spouse or parents would not be liable for tax, and the clubbing of income would not apply in this scenario.