Question

In what circumstances is the income of one person treated as the income of another?

Answer 1

' it's all in the family ' It may seem ordinary to invest money for a nonearning spouse by way of fixed deposits, or other income earning assets or to set up bank accounts, mutual funds or other investments por children to provide for their needy in future. Usually, you are only taxed for your own income, but under certainspecial circumstances some incomes are 'clubbed ' along with your income and you may be liable to pay tax on such clubbed income.