Raghuveer has two minor children, viz., Master A and Master B. Master A is a child artist and Master B is suffering from diseases specified under section 80U of the Income Tax Act, 1961. The Income of both the minor chil

Answer 4(b) As per section 64(1A), income of minor children is clubbed with the income of that parent whose income (excluding minor's income) is higher. In this case, Mr. Raghuveer income is more than his wife income and, hence, if any income of minor child is to be clubbed then it will be clubbed with the income of Mr. Raghuveer. Income of minor child earned on account of manual work or income from the skill, knowledge, talent, experience, etc., of minor child will not be clubbed with the income of his/her parent. Income of a minor suffering from disability specified under section 80U will not be clubbed with the income of his/her parent. The taxpayer can claim an exemption under section 10(32) ₹ 1,500 per child provided opted out of section 115BAC. Particulars Whose hands the income is taxable Income of A from stage shows ₹ 1,00,000 Income of A from stage show will not be clubbed with the income of Mr. Raghuveer. This income is taxable in the hands of minor child A. Income of A from bank interest ₹ 6,000 Income of A from bank interest of ₹ 6,000 will be clubbed with the income of Mr. Raghuveer. Further he will be entitled to claim exemption of ₹ 1,500 under section 10(32), hence, net income to be clubbed will be ₹ 4,500 (₹ 6,000 - ₹ 1,500). Income of B from dividend from domestic company ₹ 30,000 Dividend income of B who is suffering from diseases u/s 80U, will not be clubbed with the income of Mr. Raghuveer. This income is taxable in the hands of minor child B. Income of B from bank interest ₹ 1,20,000 Bank Interest Income of B who is suffering from diseases u/s 80U, will not be clubbed with the income of Mr. Raghuveer. This income is taxable in the hands of minor child B.