Section 64 (1A): Income Of Minor Child

By | February 17, 2016
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Exemption of Rs. 1,500/- for Income of each minor child u/s 10 (32), of Income Tax Act, 1961−

As per S. 10(32), in case the income of an individual includes the income of his minor child in terms of S. 64(1A), such individual shall be entitled to exemption of Rs. 1,500 in respect of each minor child if the income of such minor as includible u/s 64(1A) exceeds that amount. Where, however, the income of any minor so includible is less than Rs. 1,500, the aforesaid exemption shall be restricted to the income so included in the total income of the individual.

CLUBBING PROVISIONS AT A GLANCE

SECTIONNATURE OF TRANSACTIONCLUBBED IN THE 
HANDS OF		CONDITIONS/EXCEPTIONSRELEVANT REFERENCE
64(1A)Income of a minor child
[Child includes step child, adopted child and minor married daughter].
  1. If the marriage subsists, in the hands of the parent whose total income is greater; or;
  2. If the marriage does not subsist, in the hands of the person who maintains the minor child.
  3. Income once included
    in the total income of either of parents, it shall continue to be included in the hands of same parent in the subsequent year unless AO is satisfied that it is necessary to do so (after giving that parent opportunity of being heard)
Clubbing not applicable for:—

  1. Income of a minor child
    suffering any disability specified u/s 80U.
  2. Income on account of manual work done by the minor child.
  3. Income on account of any
    activity involving application
    of skills, talent or specialized knowledge and experience.
  1. Income out of property transferred for no consideration to a minor married daughter, shall not be clubbed in the parents’ hands. [S. 27]
  2. The parent in whose hands
    the minor’s income is clubbed is entitled to an exemption up to Rs. 1,500 per child. [S. 10(32)]

Reference:

As Per Section 10(32), of the Income Tax Act, 1961-

Incomes not included in total income.

In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included—

(32)  in the case of an assessee referred to in sub-section (1A) of section 64, any   income includible in his total income under that sub-section, to the extent such income does not exceed one thousand five hundred rupees in respect of each minor child whose income is so includible.

Related posts:

  1. Clubbing of income of Minor Child under Income Tax Act 1961
  2. Clubbing of Income of Minor Child in Parents Income under Income Tax Act 1961
  3. Clubbing of Income
  4. Section 64(2): Conversion of self-occupied property into HUF property
  5. Section 64(1)(iv): Clubbing of income from asset transferred to spouse
  6. Section 64(1)(vii): Clubbing of income from asset transferred to any person for the benefit of the spouse

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