Indian Income Tax | Minor Child Income
Section 10(32) Exemption for Minor Child Income: Rs. 1,500 Relief and Clubbing Rules
Section 10(32) of the Income-tax Act, 1961 allows a limited exemption where a minor child's income is included in a parent's taxable income under Section 64(1A). The exemption is up to Rs. 1,500 per minor child, not a blanket exemption of all income earned by minors.
What does Section 10(32) mean?
Under Section 10(32), in the case of an assessee referred to in Section 64(1A), income included in the assessee's total income under that provision is exempt to the extent it does not exceed Rs. 1,500 in respect of each minor child. The exemption is linked directly to the clubbing of a minor's income with the parent's income.
Eligibility, nature of income and amount exempt
| Eligible assessee | A parent whose total income includes the income of a minor child under Section 64(1A). |
|---|---|
| Nature of income | Income of a minor child that is required to be included in the parent's total income under the clubbing rules. |
| Maximum exemption | Rs. 1,500 per minor child, or the actual clubbed income attributable to that child if lower. |
| Relevant law | Sections 10(32) and 64(1A) of the Income-tax Act, 1961, for periods governed by that Act. |
How Section 64(1A) clubbing works
Section 64(1A) generally includes the income of a minor child in the total income of a parent, subject to specified exceptions. Where the marriage of the parents subsists, the minor's income is ordinarily included in the total income of the parent whose income, before such inclusion, is greater. Where the marriage does not subsist, the provision contains a separate rule linked to the parent who maintains the child. Once income is included in one parent's total income, the statutory rules govern any subsequent change.
Conditions for claiming the exemption
- Income must be clubbed: The minor child's income must be included in the parent's total income under Section 64(1A).
- Apply the limit separately: Calculate the relief for each eligible minor child independently.
- Do not exceed actual income: If only Rs. 900 of a child's income is clubbed, the exemption for that child is limited to Rs. 900.
- Keep supporting records: Maintain income statements, interest certificates, account details and the computation showing how the child's income was included.
Minor child income not covered by clubbing
The following exceptions under Section 64(1A) should be considered before computing any Section 10(32) exemption:
- Manual work: Income arising from work done by the minor child.
- Skill, talent or specialised knowledge: Income arising from an activity involving the minor's application of skill, talent or specialised knowledge and experience.
- Specified disability: Income of a minor child suffering from a disability of the nature specified in Section 80U.
Income falling within these exceptions is not clubbed under Section 64(1A); consequently, the Section 10(32) exemption is not the mechanism used to exclude that income. Its tax treatment must be examined separately.
Examples of the Rs. 1,500 exemption
| Situation | Income clubbed | Section 10(32) relief |
|---|---|---|
| One child earns bank interest | Rs. 8,000 | Rs. 1,500 |
| One child has smaller interest income | Rs. 900 | Rs. 900 |
| Two children each have clubbed income of Rs. 5,000 | Rs. 10,000 total | Rs. 3,000 total |
These examples illustrate the Section 10(32) calculation under the 1961 Act. They do not account for other deductions, rates or tax-year-specific rules.
Difference between exemption and deduction
Section 10(32) is an exemption from income included under Section 64(1A), not a deduction from gross total income under Chapter VI-A. The limit does not rise merely because the parent incurs expenses for the child. See the related guide to Chapter VI-A deductions for a different category of tax relief.
Tax law applicable from 1 April 2026
The Income-tax Act, 2025 took effect on 1 April 2026. Section 10(32) and Section 64(1A) are references to the Income-tax Act, 1961 and remain relevant when dealing with periods governed by that Act. For a tax year governed by the 2025 Act, consult the corresponding clubbing and exemption provisions and the applicable transition rules rather than assuming the old section numbers continue unchanged.
Official legal sources and filing guidance
- Income Tax Department: income-tax legislation
- India Code: central legislation and amendments
- Income Tax Department: e-Filing portal
- Related article: tax-exempt income
Frequently asked questions
What is the exemption under Section 10(32)?
Under the Income-tax Act, 1961, a parent whose total income includes a minor child's income under Section 64(1A) can exclude up to Rs. 1,500 per minor child, or the amount clubbed if lower.
Is Rs. 1,500 available for each minor child?
Yes. The limit is applied separately for each minor child whose income is included in the parent's total income under Section 64(1A).
Does a minor child's income from personal skill get clubbed?
No. Income arising from the minor's manual work or an activity involving application of the minor's skill, talent or specialised knowledge and experience is excluded from clubbing under Section 64(1A).
What if the minor child has a disability?
Section 64(1A) excludes income of a minor child suffering from a disability of the nature specified in Section 80U of the Income-tax Act, 1961.
Which parent includes the minor child's income?
Where the parents' marriage subsists, it is generally included in the income of the parent whose total income, excluding the minor's income, is greater. Special rules apply where the marriage does not subsist.
Is Section 10(32) still the correct section after April 2026?
Section 10(32) is a provision of the Income-tax Act, 1961. For tax years governed by the Income-tax Act, 2025, consult the corresponding provisions and applicable transition rules.
General tax information only. Verify the law and return instructions applicable to the relevant tax year.