Liability of the transferee in respect of Clubbed Income - Section 65 - Income Tax - Ready Reckoner - Income Tax

Liability of the transferee in respect of Clubbed Income - Section 65 Although clubbing provision is applicable, and income is taxable in the hands of transferor, still notice of demand can be served on the transferee and amount recovered from him. The transferee is liable to pay the portion of tax which is attributable to the clubbed income. Where, by reason of the provisions contained in section 60 to 64 or section 27 , the income from any asset is to be clubbed with the income of the transferor, then the transferee shall on the service of a notice of demand by the Assessing Officer, shall be liable to pay that portion of the tax levied on the transferor which is attributable to the income so clubbed. Where any such asset is held jointly by more than one person, they shall be jointly and severally liable to pay the tax which is attributable to the income from the assets so included.