§64 — Clubbing of income

Certain income of a SPOUSE, MINOR CHILD or son's wife is CLUBBED with the individual's income — e.g. income from assets transferred without adequate consideration, and a spouse's remuneration from a concern in which the individual has a substantial interest. A minor's income is clubbed with the higher-earning parent (₹1,500 exemption per child under §10(32)).

Key points

• §64 clubs the following into the assessable income of the individual: (a) §64(1)(ii) — SALARY/remuneration of a SPOUSE from a concern in which the individual has a SUBSTANTIAL INTEREST (≥20%), UNLESS the spouse possesses technical/professional qualifications and the income is attributable to that knowledge;
• (b) §64(1)(iv) — income from ASSETS TRANSFERRED to the spouse without adequate consideration (not in connection with an agreement to live apart);
• (c) §64(1)(vi) — income from assets transferred to a SON'S WIFE without adequate consideration;
• (d) §64(1A) — income of a MINOR CHILD is clubbed with the parent whose total income is HIGHER, with an exemption of ₹1,500 per child under §10(32) — EXCEPT income from the minor's own manual work or skill/talent/specialised knowledge, and income of a minor with a disability (§80U).
• §60-§61 cover transfer of income without transfer of the asset, and revocable transfers.
• Where clubbed asset income is reinvested, only income on the original transferred asset is clubbed (not on the accretion).

Reference: §§60-64 ITA 1961 read with §10(32) — under ITA 2025 (FY 26-27 onwards), this is §99