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Clubbing of income of major child

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Suresh Kumar Ramasamy

Software Consultant

37 Points Posted on 27 September 2021

So far I have been clubbing, under Section 64(1A), the interest income from my minor son's SB account and Bank FDs. Now he has become major, but he continues to be student, with no income of his own. Which section should I follow?

So far I have been taking an exemption of Rs. 1,500 while clubbing. Is it possible to avail full amount (max Rs. 10000) under section 80 TTA for his SB account (in addition to the deduction for my SB account).

Thanks & Regards.

Replies (2)

Quick Summary

When your child turns 18 and becomes a major, the rules for clubbing their income change. The income will now be taxed in their own name, so it's important to get a PAN card for them and start filing their tax returns. You may also be able to claim deductions under Section 80TTA for their savings account interest.

JGM

Knowledge Sharer

443 Points Posted on 27 September 2021

Now that your son is major, the clubbing provision should not apply and the income should be taxed in your son's hands

J S BHAVSAR

CONSULTING

1322 Points Posted on 28 September 2021

As soon as your son becomes major (age 18 and above), his PAN Card should be obtained asap. And the Efiling of his income should start on his PAN only.