Section 100 - Liability of person in respect of income included in income of another person
Clubbing fixes the person in whose total income the amount is assessed, but Section 100 gives the Assessing Officer a recovery route against the person in whose name the asset stands or who is the firm member. Liability arises for the tax attributable to the included income after service of a demand notice.
Reviewed by CA Nikhil Gupta · Updated 9 October 2026
Section 100 is presented using the consolidated Income-tax Act, 2025 as amended by the Finance Act, 2026. The general commencement date is 1 April 2026. Earlier years and saved proceedings may remain governed by the Income-tax Act, 1961 and the repeal/savings framework.
2-minute professional decode
Clubbing fixes the person in whose total income the amount is assessed, but Section 100 gives the Assessing Officer a recovery route against the person in whose name the asset stands or who is the firm member. Liability arises for the tax attributable to the included income after service of a demand notice.
Who should test this section?
Section 100 is relevant to individuals and family structures when liability of person in respect of income included in income of another person; advisers should trace the relationship, transfer and beneficiary mechanics instead of relying on ownership labels alone.
Evidence to retain
For section 100, retain relationship records, transfer instruments, consideration evidence, investment/capital-account workings and the attribution calculation connected with liability of person in respect of income included in income of another person.
1961 Act bridge
| Legacy provision | Legacy heading | Mapping |
|---|---|---|
| 65 | Liability of person in respect of income included in the income of another person. | Renumbered / mapped |
The bridge is a research aid. Legacy case law carries over only after the current wording and transition rules are matched.
Rules and forms linked to this section
No provision-specific Rule was independently mapped from the current Rules register for this section. That does not mean the wider Rules are irrelevant.
Worked application
Income from an asset standing in another person’s name is included in the transferor’s assessment. If the Assessing Officer serves the statutory demand, the nominal holder can be required to pay the portion of tax attributable to that income. Joint holders may be jointly and severally liable.
Common mistake
Under section 100, relationship by itself is neither enough nor irrelevant: clubbing must follow the precise statutory transfer, benefit and attribution conditions for liability of person in respect of income included in income of another person.
Compliance approach
Identify the statutory trigger for section 100, lock the relevant tax year, reconcile the facts to the operative sub-section, preserve the evidence trail and separately test every linked Rule, Form, Schedule and exception before finalising the return position.
Numeric / timing checkpoints in the operative text
- No standalone numeric checkpoint should be inferred from the heading; read the operative text.
Related provisions
- Section 25
- Section 99
- Section 101
Current statutory text
Primary-source trail
- Consolidated Income-tax Act, 2025 (as amended by Finance Act, 2026) (official external source)
- Income Tax Department - Act/Rules/Forms hub (official external source)
- CBDT commencement material - Act operative from 1 April 2026 (official external source)
Source status: full Section 100 statutory text in the local source corpus; reconciled to the current consolidated Act control on 8 October 2026.