Clubbing of income of your child

Income earned by your minor child will be taxable in the hands of one of the parents whose taxable income excluding the income of the child is higher.

In case the income of individual includes income of his/her minor child, such individual can claim an exemption of Rs. 1,500 or income of minor so clubbed, whichever is less.

However, no clubbing will be attracted if the income earned by minor is due to his /her expertise or he is disabled. No clubbing in the case of a minor married daughter.

Where separation has taken place In between the parents then clubbing will take place in hands of parent maintaining the child.