Return of minor

Hi Kaushal,

As per the provisions of the section 64(1A) of the Act, the Income accruing to a minor child would be clubbed with the income of his / her parent having greater income (excluding the income to be clubbed). Once the clubbing of the income of the minor child is done in the hands of either parent, then the same cannot be clubbed in the hands of another parent in the subsequent years. However, the assessing officer may do the clubbing in the hands of another parent only after giving that parent an opportunity of being heard.

 

Thanks Sushmita,

            But if the child is earning income through his personal skill and talent, won't he be required to file his own return of income?

The clubbing provisions are applicable till the minor attains 18 years of age, subsequent to which he / she will have to file separate tax returns. 

 

As per section 64(1A) , income of minor child is clubbed with the income of his/her parent (*). Income of minor child earned on account of manual work or any activity involving application of his/her skill, knowledge, talent, experience, etc. will not be clubbed with the income of his/her parent. However, accretion from such income will be clubbed with the income of parent of such minor. Income of minor will be clubbed along with the income of that parent whose income (excluding minor's income) is higher. If the marriage of parents does not sustain, then minor's income will be clubbed with the income of parent who maintains the minor. In case the income of individual includes income of his/her minor child, such individual can claim an exemption under section 10(32)) of Rs. 1,500 or income of minor so clubbed, whichever is less. (*) Provisions of section 64(1A) will not apply to any income of a minor child suffering from disability specified under section 80U. In other words income of a minor suffering from disability specified under section 80U will not be clubbed with the income of his/her parents

Is it loss of the minor child will be clubbed in the hands of either of the parents

The income earned by the MINOR shall be clubbed in the income of his parents.(who has higher Income either mother or father).