Clubbing of income includes losses, ensuring tax symmetry when income or loss is shifted to another person. Clubbing provisions treat the word income as including a loss when the income of a specified person is included in the total income of an individual. This ... Summary
Clubbing of income includes losses, ensuring tax symmetry when income or loss is shifted to another person.
Clubbing provisions treat the word income as including a loss when the income of a specified person is included in the total income of an individual. This means losses falling within the clubbing rules are also added in the individual's computation, so the mechanism remains symmetrical and does not allow a tax advantage by shifting either profit or loss.
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