Income of Minor Child - Section 64(1A) - Income Tax - Ready Reckoner - Income Tax

Income of Minor Child - Section 64(1A) Income of minor child including minor married daughter shall be clubbed with the income of parent whose total income excluding the income of the minor is greater. Exceptions: Minor child suffering from disability specified under section 80U of the Income Tax Act. Income earned by minor child, on account of manual work or activity involving application of his skill, talent, specialized knowledge and experience. If none of the parent is alive, minor shall file the return through legal guardian. There shall be no clubbing. Notes: The income of the minor child shall be included. where the marriage of his parents subsists, in the income of that parent whose total income (excluding the income includible under this sub-section) is greater or where the marriage of his parents does not subsist, in the income of that parent who maintains the minor child in the previous year. Once included in hand of either parent, cannot be changed in subsequent year, unless A.O. is satisfied. If the income by way of manual work or activity involving application of skill etc. which was not clubbed, is invested, and income is earned thereon, such investment income shall be clubbed. If the minor child becomes major during the previous year, then the incomes which have accrued to him till the date he attains majority shall be clubbed. Child includes step child, adopted child and minor married daughter. The parents in whose hands the minor income is clubbed is entitled to exemption up to ₹ 1500 per child. [ Section 10(32) ] Income out of property transferred for no consideration to a minor married daughter, shall not be clubbed in the parents hands.