Gift Tax and Clubbing of Income

I am unable to invest properly in the names of my wife and other family members as the clubbing provisions of the tax laws mean that income from such investments gets clubbed with my taxable income. Could you explain clubbing and how to avoid it? Neeraj Goel Gifts are a universal way to show love and affection to your family members and friends. The Indian government realised the merit of gifting, and stopped taxing gifts in 1998. No tax is to be paid on gifts while your loved ones enjoys the gift as well as the income from that gift. Having said that, let me hasten to clarify that the above statement will not apply if the recipient happens to be your spou

This article was originally published on November 21, 2002.