Clubbing of minor’s income [Section 64(1A)] :
(i) All income of a minor is to be included in the income of his parent.
(ii) However, the income derived by the minor from manual work or from any activity involving his skill, talent or specialised knowledge or experience will not be included in the income of his parent.
(iii) The income of the minor will be included in the income of that parent, whose total income is greater.
(iv) Once clubbing of minor’s income is done with that of one parent, it will continue to be clubbed with that parent only, in subsequent years. The Assessing Officer, may, however, club the minor’s income with that of the other parent, if, after giving the other parent an opportunity to be heard, he is satisfied that it is necessary to do so.
(v) Where the marriage of the parents does not subsist, the income of the minor will be includible in the income of that parent who maintains the minor child in the relevant previous year.
(vi) Section 10(32) provides that where the income of an individual includes the income of his minor child, the individual shall be entitled to exemption of such income subject to a maximum of Rs 1,500 per child. This provision is to provide relief to the individuals in whose total income, the income of the minor child is included.
(vii) However, the income of a minor child from suffering from any disability of the nature specified in section 80U shall not be included in the hands of the parent but shall be assessed in the hands of the child.
(viii) It may be noted that the clubbing provisions are attracted even in respect of income of minor married daughter.
Illustration
Mr. A has three minor children – two twin daughters and one son. Income of the twin daughters is Rs 2,000 p.a. each and that of the son is Rs 1,200 p.a. Compute the income, in respect of minor children, to be clubbed in the hands of Mr. A.
Solution
Taxable income, in respect of minor children, in the hands of Mr. A is
| Particulars | Rs | Rs |
| Twin minor daughters [Rs 2,000 × 2] | Rs 4,000 | |
| Less: Exempt under section 10(32) [Rs 1,500 × 2] | Rs 3,000 | Rs 1,000 |
| Minor son | Rs 1,200 | |
| Less: Exempt under section 10(32) | Rs 1,200 | Nil |
| Income to be clubbed in the hands of Mr.A | Rs 1,000 |