Minor Child Savings Acc Interest Income - Treatment Under New Regime
This query is : Resolved
31 August 2025
Hi Experts,
Please let me know the tax treatment under new regime for interest earned on savings account of my minor daughter of Rs 536. Is the same exempt like in the old regime until Rs 1500 or is the same taxable.
Also what is the difference between Section 10(32) and Section 64(1A).
Also can I claim exemption under Section 10(32) for Rs 536 for my only daughter interest income as mentioned above.
Regards,
Manik Chand
Please let me know the tax treatment under new regime for interest earned on savings account of my minor daughter of Rs 536. Is the same exempt like in the old regime until Rs 1500 or is the same taxable.
Also what is the difference between Section 10(32) and Section 64(1A).
Also can I claim exemption under Section 10(32) for Rs 536 for my only daughter interest income as mentioned above.
Regards,
Manik Chand
31 August 2025
Section 64(1A): Mandates that any income (other than from manual work or child's own talent/skill) accruing to a minor is to be included in (clubbed with) the income of the parent whose total income is higher.
Section 10(32): Allows the parent, in whose hands the minor's income is clubbed, to claim an exemption up to Rs 1,500 per minor child or the actual income clubbed, whichever is lower.
The entire Rs 536 is exempt under Section 10(32), and the clubbing and exemption provisions continue to apply in the new tax regime. No tax is required to be paid on this interest.
Section 10(32): Allows the parent, in whose hands the minor's income is clubbed, to claim an exemption up to Rs 1,500 per minor child or the actual income clubbed, whichever is lower.
The entire Rs 536 is exempt under Section 10(32), and the clubbing and exemption provisions continue to apply in the new tax regime. No tax is required to be paid on this interest.
21 September 2025
Good luck....
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