💰 Tax Savings · Tax-free income (Section 10)
Minor's income — the ₹1,500 clubbing exemption (Section 99, old 10(32))
✍️ EaseValue Advisors · Updated 17 Jul 2026 · FY 2025-26
In short
A minor child's income is clubbed with the higher-earning parent — but ₹1,500 per child is exempt (Section 99, old 64(1A) with 10(32)). And a minor's own skill/talent income isn't clubbed at all.
The clubbing rule
Income of a minor child (e.g. interest on money gifted to them) is added to the income of the parent who earns more — Section 99 (old 64(1A)) — with a small ₹1,500 exemption per child (old 10(32)).
What is NOT clubbed
- Income the minor earns from their own skill, talent or manual work (child artist, young athlete, etc.) — taxed in the child's own hands with a full exemption/slabs.
- Income of a disabled minor (covered by the disability deduction) isn't clubbed.
- Once the child turns 18, their income is their own — no clubbing.
How to use it
- Invest a minor's money in tax-free instruments (PPF, tax-free bonds) so there's no income to club.
- Use Sukanya Samriddhi for a daughter — the interest is exempt.
- Keep genuine talent income in the child's own return.
Who it helps
Parents investing for children — structure it so the income is exempt rather than clubbed at your slab.
The law behind it
Section 99 (old 64(1A)) old 10(32)
General information for FY 2025-26 (AY 2026-27), not advice on your specific case. Limits, rates and conditions
change with each Finance Act and depend on your facts — confirm before acting. © EaseValue Advisors LLP.
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