CLUBBING PROVISION, Income Tax

[Brijgopal kankani]

I WANT TO TRANSFER MY INCOME TO WIFE/PARENTS AS A GIFT BUT ACCORDING TO CLUBBING PROVISION OF INCOME TAX ACT, IT WOULD BE TAXABLE IN MY HAND THAN MY QUESTION IS WHAT CAN I DO SO THAT INCOME NOT TAXABLE IN MY HAND OR CLUBBING PROVISION WOULD NOT ATTRACT.

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[MARIAPPAN GOVINDARAJAN]

Whatever the income gifted to your wife or parents is first taxable on your hand. After the transfer of amount by way of gift your wife or parents will not be liable for tax. Clubbing of income does not arise in your case.