Clubbing of income
Also called Clubbing provisions
A tax rule that adds income from money or assets you give your spouse, without adequate payment in return, to your own income.
Clubbing of income stops couples from splitting income just to lower tax. Under section 99 of the Income-tax Act, 2025, income from assets you transfer to your spouse without adequate consideration is taxed in your hands. The gift itself stays tax-free. Read how it fits a couple’s money plan in couples financial planning, and see tax on gifts.
Questions people ask
What is clubbing of income?
A rule under which income legally earned in someone else's name is taxed as yours. The most common case: income from money or assets you transfer to your spouse without adequate consideration, such as a gift, is added to your income under section 99 of the Income-tax Act, 2025.
Is a gift to my spouse taxed?
The gift itself is not, because a spouse counts as a relative under the Income-tax Act, 2025, and gifts from relatives are not taxed. Clubbing applies to the income the gifted money earns afterwards, such as interest or rent.
Does clubbing apply to my spouse's salary?
No, not to salary your spouse earns from their own job. Section 99 clubs salary only where it comes from a concern in which you have a substantial interest, and even then not income attributable to your spouse's own technical or professional qualifications.
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