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CA Intermediate · Taxation · Income of Other Persons included in Total Income of Assessee

Kiran, a 15-year-old minor, earned Rs 50,000 from a talent show using his own skill and Rs 30,000 as interest on a fixed deposit made out of gifts from relatives. His father has higher income than his mother. What is the amount clubbed in the parent's income for tax year 2026-27, before any exemption available for a minor's income?

Rs 30,000 is clubbed, because the minor's income from skill or talent is excluded from clubbing and only the interest on the deposit is included in the higher-income parent's total income.

  1. ARs 80,000
  2. BRs 30,000Correct
  3. CRs 50,000
  4. DNil

Explanation

Income of a minor child is clubbed with the parent of higher income, except income earned from manual work or by skill, talent, or specialised knowledge. The Rs 50,000 earned by talent is excluded and taxed in Kiran's hands. Only the Rs 30,000 interest is clubbed.

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