Section 99 — Income of individual to include income of spouse, minor child, etc

(1) The total income of any individual, for a tax year, shall include the income
arising directly or indirectly,—
( a) to the spouse of such individual,—
( i) by way of salary, commission, fees or any other form of remu -
neration, whether in cash or kind, from a concern in which such
individual has a substantial interest but shall not include income
solely attributable to the application of technical or professional
knowledge, experience and technical or professional qualification
of the spouse;
( ii) from assets transferred directly or indirectly to him or her by such
individual otherwise than for adequate consideration or in connec-
tion with an agreement to live apart, subject to the provisions of
section 25(a);
( b) to the son’s wife of such individual from assets transferred directly or
indirectly on or after the 1st June, 1973, to her by such individual, oth-
erwise than for adequate consideration;
( c) to the minor child of the such individual, but shall not include income
accruing or arising—
( i) on account of work done by such child; or
( ii) from activities where his skill, talent, specialised knowledge or
experience is applied; or
( iii) where such minor child is suffering from disability of the nature
specified in section 154;
( d) to any person or association of persons from assets transferred directly
or indirectly, otherwise than for adequate consideration to the person
or association of persons by such individual, to the extent to which the
income from such assets is for the immediate or deferred benefit of his
or her spouse or his son’s wife, as the case may be, other than the assets
transferred before 1st June 1973, to the extent to which the income from
such assets is for the immediate or deferred benefit of his son’s wife.
(2) If the asset transferred under 11[sub-section (1)(a)(ii) or (b)] is invested by the
spouse or son’s wife, in any business or in the nature of capital contributed as a
11. Substituted for “sub-section (1)(a)(i) or (b)” by the Finance Act, 2026, w.e.f. 1-4-2026.
partner in a firm, or, as the case may be, for being admitted to the benefits of part-
nership in a firm, then, the income to be included in the hands of the individual for
the tax year shall be as follows:—
A= B C
D× 



where ,—
A = Income to be included in the hands of individual for the tax year;
B = Income and interest or both, arising to the spouse or son’s wife from
the business or the firm, as applicable during the tax year;
C = Value of such assets invested, or contributed as capital by the spouse
or son’s wife as on the first day of the tax year;
D = Total investment or total capital contribution, as the case may be, by
the spouse or son’s wife as on the first day of the tax year.
(3) Where a property owned by an individual is converted into property belonging
to the Hindu undivided family of which he is a member, through—
( a) the act of impressing such separate property with the character of pro-
perty belonging to the family; or
( b) throwing it into the common stock of the family; or
( c) transfer, directly or indirectly to the family,
without adequate consideration, then, irrespective of any other provision of this
Act or any other law in force for computing the total income of such individual,—
( i) the individual shall be deemed to have transferred such property, through
the family, to the members of such family for being held jointly, and the
income derived from such property or part thereof, shall be deemed to
be income of the individual;
( ii) where the property so converted has been the subject-matter of partition
(whether partial or total) amongst the member of the family, the income
derived from such property as is received by the spouse of the individual
on partition, shall be deemed to arise to the spouse from assets trans -
ferred indirectly to the spouse and the provisions of sub-section (1)( a)
shall apply,
and the income referred to in clauses ( i) and ( ii) shall, on being included in the
total income of the individual, be excluded from the total income of the family or
the spouse.
(4) The provisions of sub-section (3) shall not apply where the property of the
individual has been converted into property belonging to the family on or before
the 31st December, 1969.
(5) For the purposes of this section,—
( a) for sub-section (1)(a)(i),—
( i) the income referred to in that clause shall be included in the hands
of either of the spouse whose total income before such inclusion is
greater; and
( ii) such income, once included in the total income of either spouse,
for a tax year, shall not be included in the income of the other
spouse for any succeeding tax year, unless the Assessing Officer is
so satisfied, after giving the other spouse an opportunity of being
heard;
( iii) an individual shall be deemed to have a substantial interest in a
concern,—
( A) in case where the concern is a company, if its shares (not
being shares entitled to a fixed rate of dividend whether with
or without a further right to participate in profits) carrying
not less than 20% of the voting power are, at any time during
the tax year, owned beneficially by the individual or jointly
with one or more of his relatives;
( B) in any other case, if such person is entitled, or such person
and one or more of his relatives are jointly entitled, to at least
20% of the profits of such concern at any time during the tax
year;
( b) for sub-section (1)(c), income of minor child shall be included—
( i) in the income of that parent whose total income before such inclu-
sion is greater, in case where the marriage of his parents subsists;
or
( ii) in the income of the parent who maintains such child during the
tax year, in case where marriage of his parents does not subsist,
and such income, once included in the total income of either of the parent,
for a tax year, shall not be included in the income of the other parent for
any succeeding tax year, unless the Assessing Officer is so satisfied, after
giving the other parent an opportunity of being heard;
( c) for sub-section (3), “property” includes—
( i) interest in property; or
( ii) movable or immovable property; or
( iii) proceeds of sale of such property and any money, property or
investment representing such proceeds; or
( iv) where property is converted into any other property by any method,
such other property;
( d) for this section, “income” includes loss.