Income of Minor Child (SEC. 64 (1A)
All income which arises or accrues to the minor child shall be clubbed in the income of his parent (Sec. 64(1A), whose total income (excluding Minor’s income) is greater. However, in case parents are separated, the income of minor will be included in the income of that parent who maintains the minor child in the relevant previous year.
Exemption to parent [Sec 10(32)]
An individual shall be entitled to exemption of Rs. 1,500 per annum(p.a.) in respect of each minor child if the income of such minor as included under section 64 (1A) exceeds that amount. However if the income of any minor child is less than Rs. 1,500 p.a. the aforesaid exemption shall be restricted to the income so included in the total income of the individual.
When Section 64(1A) is not applicable
In case of income of minor child from following sources, the income of minor child is not clubbed with the income of his parent.
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Income of minor child on account of any manual work.
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Income of minor child on account of any activity involving application of his skill, talent or specialized knowledge and experience.
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Income of minor child (from all sources) suffering from any disability of the nature specified in sec 80U.