Income is usually taxed in the hands of the person who earns it, but clubbing provisions can shift another person’s income into your return. This commonly affects spouse transfers, minor child income and family investment structures.
The official Schedule SPI page says the Income-tax Act contains provisions for clubbing income of another person with the taxpayer's income, such as when a minor child earns income or when a taxpayer transfers assets to a spouse.
| Situation | Clubbing risk |
|---|---|
| Money gifted to spouse and invested | Income from transferred asset may need clubbing review. |
| Minor child earns interest/dividend | Minor child's income may be clubbed subject to exemption. |
| Family loan without documentation | Could create attribution and evidence issues. |
| Child’s skill income | Needs separate review; not every child-related receipt is treated the same. |
The official threshold page lists income of minor child clubbed under Section 64(1A) and refers to the Section 10(32) exemption of ₹1,500 per child or income of minor, whichever is lower.
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It reports income of specified persons such as spouse or minor child that is includible in the taxpayer's income.
Specific rules and exceptions apply; review Section 64 and Schedule SPI treatment.
The official threshold page refers to ₹1,500 per child or income of minor, whichever is lower.