Section 100
Section 100: liability of person in respect of income included in income of another person
Section 100 addresses a practical follow-on question from the clubbing rules in this Chapter: once someone else's income has been added to an assessee's total income and taxed there, who actually has to pay that portion of the tax? The answer is the person who holds the asset (or firm membership) that generated the income - not necessarily the assessee in whose hands it was taxed.
This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.
What Section 100 says
Where income of a person other than the assessee - arising from an asset, or from membership of a firm - has been included in the assessee's total income under this Chapter or under Section 25(a), then irrespective of anything to the contrary in any other law, the person in whose name that asset stands, or who is the firm member, is liable to pay the portion of tax levied on the assessee that is attributable to the included income, once the Assessing Officer serves a notice of demand.
Where such an asset is held jointly by more than one person, they are jointly and severally liable to pay that tax.
The provisions of Chapter XIX-D (governing recovery of tax) apply accordingly to collect this liability.
Frequently asked questions
If my spouse's income is clubbed with mine and taxed in my hands, who actually pays that tax?
Under Section 100, the person in whose name the underlying asset stands (or who is the firm member generating the income) is liable to pay the portion of tax attributable to that clubbed income, once served a notice of demand by the Assessing Officer.
What if the asset generating clubbed income is jointly held?
All joint holders of that asset are jointly and severally liable to pay the tax attributable to the clubbed income.
Related sections
Want this applied to your actual filing, not just explained?
Get help responding to a notice of demand for clubbed incomeLast updated 9 September 2026