Section 100 — Liability of person in respect of income included in income of another person
Old Act equivalent: Section 65 of IT Act 1961 Sub-part: Chapter V — Income of Other Persons Included in Total Income
Statutory Text
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.
Sub-sections
This section has no sub-sections — it is a single operative provision with clauses (a) to (c).
Provisos
None.
Explanations
None.
Tables
None.
Key Structure
- Applies to: The person whose income is clubbed into the assessee’s total income under Chapter V or section 25(a)
- Recovery mechanism:
- (a) The person in whose name the asset stands / who is a firm member is liable for the proportionate tax — on service of notice of demand
- (b) Joint holders are jointly and severally liable
- (c) Chapter XIX-D (recovery of tax) provisions apply
- Override: Operates “irrespective of anything to the contrary in any other law”
Cross-References
- s096-transfer-income — Section 96: clubbing on transfer of income
- s097-revocable-transfer — Section 97: clubbing on revocable transfer
- s099-clubbing-spouse-minor — Section 99: clubbing of spouse/minor/son’s wife income
- s025-interpretation — Section 25(a): deemed owner — property transferred to spouse/minor
- Chapter XIX-D (not yet ingested) — Recovery of tax provisions
Amendment Notes
None noted from the extracted pages.
Practical Notes
- This section creates a recovery mechanism: while the income is assessed in the assessee’s (transferor’s) hands, the tax can be recovered from the person in whose name the asset stands.
- Joint and several liability (clause (b)) means the department can recover the full amount from any one joint holder.
- The AO must serve a notice of demand — the liability doesn’t arise automatically; it requires formal notice.