Clubbing of income: inclusion of income and losses from transferred assets in the transferor's taxable income under original heads. Clubbing of income requires inclusion in the transferor's total income of income or loss from assets transferred to specified persons, continuing despite conversion or sale; losses and capital gains are clubbed, income retains its original head for classification, deductions are allowed before clubbing, loans are excluded as transfers, and where transferred funds are invested in a business by spouse or daughter in law the clubbable share is A/B x C, with partnership interest clubbable but profit share exempt and salary not clubbable.