Clubbing of income: transferred income remains taxable in the owner's hands when the underlying asset is retained by the owner. Clubbing of income operates where a person transfers income from an asset but does not transfer the asset itself; in such cases the income from the asset is taxed in the hands of the transferor (the owner who transferred the income). If an owner assigns rental income to another but retains ownership of the property, the rental income is included in the owner's taxable income.