Discover and read the best of Twitter Threads about #clubbingofincome
Most recents (1)
Can you gift money to your spouse to use their lower tax slabs?
I've been asked this question at least once each week.
Here's a thread 🧵
I've been asked this question at least once each week.
Here's a thread 🧵
In certain special cases income of another person is included (i.e. clubbed) in the taxable income of the taxpayer and in such a case he will be liable to pay tax in respect of his income as well as income of other person.
This is commonly called clubbing of income.
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This is commonly called clubbing of income.
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Why does clubbing of income exist?
In the case of individuals, income-tax is levied on a slab system on the total income.
The tax system is progressive i.e. as the income increases, the applicable rate of tax increases. Some taxpayers in the higher income bracket have a..
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In the case of individuals, income-tax is levied on a slab system on the total income.
The tax system is progressive i.e. as the income increases, the applicable rate of tax increases. Some taxpayers in the higher income bracket have a..
2/6
