Word Count : 631

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The concept of one person's income being treated as income of another person is often referred to as "clubbing of income." It is a provision in tax laws aimed at preventing tax evasion and ensuring that income earned by one person is not diverted or transferred to another person, typically for the purpose of reducing tax liability. This practice is commonly observed in income tax regulations and is applied in specific situations to ensure that individuals do not manipulate their income or assets to evade taxes. Below, I will explain the circumstances in which the income of one person is treated as income of another:

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