Minor Child Savings Acc Interest Income - Treatment Under New Regime

Save Share

This query is : Resolved

Quick Summary

Under the new tax regime, interest earned on a minor child's savings account, like the Rs 536 mentioned, remains exempt. This is due to Section 10(32), which allows an exemption up to Rs 1,500 or the actual income, whichever is less. The income is clubbed with the higher-earning parent's income as per Section 64(1A), but the exemption under Section 10(32) ensures no tax is payable on this amount.

Manik

Manik (Querist)

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

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

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.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

21 September 2025 Good luck....

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now