Clubbing of Income - Minor

This query is : Resolved

Quick Summary

Minor income is generally clubbed with the higher earning parent; splitting between parents is not allowed. Exempt interest like PPF should be shown in Schedule EI. Gifts to minor or deposits in SSY are exempt and need not be separately reported.

Ankur Aggarwal

Ankur Aggarwal (Querist)
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13 April 2026 Hello,

I have 2 kids, both minors right now. Me and my wife are both working in private sector. Suppose I am the higher earner.
1. Will the income of both kids be clubbed with me?
2. Can it be possible if income of 1 kid is clubbed with me and the other with my wife, if we are guardians of the respective kid individually?

Thanks

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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13 April 2026 1. Correct...
2. No. In general, not accepted

Ankur Aggarwal

Ankur Aggarwal (Querist)
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13 April 2026 Thank you the reply sir. 1 follow up question :
I have invested in PPF of my minor child, which generates interest that is exempt. Do I need to show this exempt interest in my ITR, if yes in which section?
Thanks

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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13 April 2026 Schedule EI..... Advisable to declare...

Ankur Aggarwal

Ankur Aggarwal (Querist)
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13 April 2026 Understood. Thank you sir.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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14 April 2026 You are welcome.

Ankur Aggarwal

Ankur Aggarwal (Querist)
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16 April 2026 Sorry, but I have one more follow up on the same.
I want to start SSY for my girl child by investing 1.5L by end of april month. I will transfer 1.5L to my daughter's bank account which will then be invested in her SSY.
- The money transferred by me to my daughter will be a gift and will be exempt. Do i need to show anything regarding this gift in my ITR or any documentation to done and maintained?
- Will this gift need to be shown as exempt income in my ITR as my daughter's income is also shown in mine.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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16 April 2026 A. No..
B. No, being her guardian, identity remains same.

Ankur Aggarwal

Ankur Aggarwal (Querist)
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16 April 2026 Okay sir. But the nature of this transfer, whether I do it in her bank account or directly to her SSY account will be an exempt gift. Right?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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16 April 2026 Technically yes. But till she is minor it is just the same identity.

Ankur Aggarwal

Ankur Aggarwal (Querist)
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16 April 2026 okay sir. Thanks for your time.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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16 April 2026 You are welcome.

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