Section 100 of Income Tax Act 2025 in hindi
Where, income of a person, other than the assessee, arising from any asset, or income from membership of a firm, is included in the total income of the assessee under this Chapter or under section 25(a), then, irrespective of anything to the contrary contained in any other law in force,—
- (a)such person, in whose name such asset stands, or who is a member of the firm, shall be liable to pay, that portion of the tax levied on the assessee which is attributable to the income so included, upon service of notice of demand by the Assessing Officer in this behalf;
- (b)where any such asset is held jointly by more than one person, they shall be jointly and severally liable to pay such tax; and
- (c)the provisions of Chapter XIX-D shall apply accordingly.
Summary
- When a person's income from an asset or a firm is included (clubbed) in another person's (the assessee's or taxpayer's) total income under this chapter or Section 25(a), the actual owner of the asset or firm member remains liable for a share of the tax.
- The person in whose name the asset stands, or who is a member of the firm, must pay the portion of the tax levied on the main taxpayer that is attributable to that clubbed income.
- This tax liability arises once the Assessing Officer (tax officer) serves a notice of demand to that person in this behalf.
- If the asset is held jointly by more than one person, all such joint holders are jointly and severally (individually and together) liable to pay the tax.
- The tax collection and recovery provisions of Chapter XIX-D apply to this outstanding tax liability.
Practical examples
FAQ
1. Who is actually liable to pay the tax on clubbed income if the main taxpayer does not pay?
The person in whose name the asset stands, or the member of the firm whose income was clubbed, is liable to pay the tax attributable to that income.
2. How does the tax officer notify the actual asset owner about this tax liability?
The Assessing Officer must serve a formal notice of demand on that person to make them liable to pay.
3. What happens if the asset that produced the clubbed income is owned by multiple people?
If the asset is held jointly by more than one person, all of them are jointly and severally liable, meaning they are collectively and individually responsible for the entire tax portion.
4. Which chapter's provisions apply for recovery of this tax?
The provisions of Chapter XIX-D apply to the collection and recovery of this tax.
Test yourself
Q1.Under Section 100, whose name must be on the notice of demand for the liability to be active?
Q2.If an asset is held jointly by more than one person, what is their liability under Section 100?
Q3.Besides the current chapter, which section is explicitly mentioned under Section 100 as a basis for including someone else's income?