Partnership

Remuneration(salary,fees, commission or any other form of remuneration)of spouse from a concern in which other spouse has substantial interest will attract clubbing provision u/s 64(1).

Substantial interest in case of partnership firm means if he along with his relative is entitled to atleast 20% of the profits of such concern at any time during the previous year.

Where  husband and wife both have substantial interest in the concern and both are in receipt of remuneration then clubbing provision will apply in hands of that spouse whose total income, before including such remuneration is greater.

Therefore, interest received shall not be clubbed provided capital introduced by the spouse from its own i.e. capital should not be contributed from any gift received by spouse from the other spouse. Otherwise interest will be clubbed u/s 64(1)(iv).