Gifting/Transferring Assets to your Relatives to Save Tax? Know all about Clubbing Provisions

Gifting/Transferring Assets to your Relatives to Save Tax? Know all about Clubbing Provisions

It’s really not uncommon for us to see people diverting their income or assets to their spouse or relative in the hope of reducing taxation. But guess what? Tax laws already have measures in place to prevent people from avoiding taxation through such means. In fact, people unaware of such provisions are laying the groundwork for tax blunders that would put them in a position to pay huge taxes in the future. The clubbing provisions in the Income Tax Act deal with cases where a person can also be taxed for the income earned by somebody else. What is Clubbing …

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