Income tax on Minor

• A minor's income is clubbed with that of the parent with the higher income.
• Only income earned till the year the minor attains age 18 is clubbed.
• A minor's income is clubbed after allowing for various deductions.

In excess of Rs. 1,500 earned by a minor, the income is added to the parent with higher income, irrespective of the residential status of either the child or the parent. The clubbing provision is applicable even if the parents are NRI and the minor stays in India or vice-versa.

Non-clubbing of Minor's Income
Clubbing provision is not applicable in the following cases:

• If the minor is suffering from permanent physical disability.
• If the minor earns through manual work or by using skills, experience, talent or specialised knowledge. It will be taxed as her own income.

Exception: Income up on such incomes are clubbed with parents, like interest received from bank if the money is deposited.