Chapter 4: Income of Other Persons Included in the Assessee's Total Income   1. Explain the concept of "Clubbing of Income" under the Income Tax Act. Introduction: The concept of Clubbing of Income refers to the inclusion of income earned by another person in the assessee's total income. The Income Tax Act has specific provisions under Section 60 to Section 64 that require the inclusion of income in the hands of the taxpayer when it is transferred or diverted in certain ways. This is done to prevent tax avoidance where income is diverted to family members to escape tax. Body: Section 60 - Transfer of Income without Transfer of Asset: Section 60 deals with income that is transferred without transferring the asset. If an individual transfers income arising from an asset (e.g., rents, dividends) to another person but retains the asset’s ownership, the income will be clubbed with the income of the transferor. Example: ...