Income of minor child [section 65(1A)]
As per section 65(1A) of the Income Tax Act, 1961 all income which arises or accrues to the minor child shall be clubbed in the income of parents. The income of minor will be clubbed in the income of that parent whose total income (excluding the income includible under section 64(1A) is greater and where the marriage of the parents does not subsist, the income of minor will be includible in the income of that parents who maintains the minor child in the previous year
Note 1: No clubbing will be done in the case of income earned by manual work, personal skill or of minor child suffering from any disability of the nature specified u/s 80U
Note 2: In case of clubbing, such individual shall be entitied to exemption of Rs.1500/- in respect of each minor child. However, if the income of any minor is less than Rs. 1500/- the aforesaid shall be restricted to the income so included in the total income of individual
Note 3: Minor means age of person in less than 18 Years