Clubbing of income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 March 2013 in regards to Income arising to the spouse from an asset transferred without adequate consideration [Section 64(1)(iv)],the section says

Where the assets transferred, directly or indirectly, by an individual to his spouse are invested by the transferee in the business, proportionate income arising from such investment is to be included in the total income of the transferor. If the investment is in the nature of contribution of capital, proportionate interest on capital will be clubbed with the income of the transferor. Such proportion has to be computed by taking into account the value of the aforesaid investment as on the first day of the previous year to the total investment in the business by the transferee as on that day.

please explain the last sentence regarding proportionate income...can we say that

amount to be clubbed=investment by transferee as on 1st day of p.y divided by total investment of business(including other peoples investment ) multiplied by income of business