Exemption in respect of clubbed income of minor [Section 10(32)] :

In case the income of an individual (i.e. the parent) includes the income of his minor child in terms of section 64(1A), such parent shall be entitled to exemption of Rs 1,500 in respect of each minor child. However, if income of any minor so includible is less than ` 1,500, then the entire income shall be exempt.

Illustration 13

Mr. Khanna has an income from salary of ` 3,00,000. Details of income of his minor children are:

Minor daughter has earned an interest income from bank FD :	Rs 5,000
His minor son has also earned an interest income on NSC :	Rs 1,000

Compute his gross total income for the P.Y. 2015-16.

Solution
Computation of Gross Total income of Mr. Khanna for the P.Y.2015-16

Income from Salary			Rs 3,00,000
Income from other sources
Minor daughter‘s interest income from bank FD	5,000
Less: Exempt under section 10(32)	(1,500)	Rs 3,500
Minor son‘s interest income on NSC	1,000
Less: Exempt under section 10(32)	(1,000)	Nil	Rs 3,500
Gross Total Income			Rs 3,03,500