Clubbing of income rules explain how transferred income, losses, capital gains, and business returns are included in another person's tax computation.

Clubbing of income includes bringing income of another person into the assessee's total income, and the stated rules continue even if transferred assets are converted, indirectly routed, or cross-transferred. Income is first computed in the hands of the actual recipient under the relevant head and then included under the same head in the other person's hands, with deductions allowed before clubbing. Losses, capital gains on sale of transferred assets, and business income from assets invested in a spouse's or son's wife's business are also addressed, while income on income is not clubbed.

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