Clubbing of Income
Definition
Income-tax provisions that add certain income of a spouse or minor child to a taxpayer's own income to prevent tax avoidance by shifting income within a family.
Related Terms in India GST
Gross Total Income
The sum of income under all heads in India — salary, house property, business, capital gains and other sources — before Chapter VI-A deductions. Deductions are then subtracted to reach total taxable income.
PAN-Aadhaar Linking
The Indian requirement to link the Permanent Account Number with the Aadhaar identity number. An unlinked PAN can become inoperative, affecting return filing, refunds and TDS rates.
Faceless Assessment
An Indian income-tax process where assessments are carried out electronically without the taxpayer meeting an officer, aimed at reducing discretion and improving transparency.
Tax Residency Certificate (TRC)
A certificate from a taxpayer's home country confirming residency, used to claim benefits under a double-taxation treaty on cross-border income. It is often required to apply a reduced withholding rate.
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