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

Meena, a resident individual, has a minor daughter Tara, who earned Rs 48,000 from a fixed deposit made out of her own savings. Tara also earned Rs 30,000 from a stage performance that required her own skill and talent. Meena's income is higher than that of her husband. Under the clubbing provisions for tax year 2026-27, what amount is clubbed in the hands of the parent (before any exemption for the minor child)?

Rs 48,000 is clubbed in Meena's income. Minor child's income is clubbed with the higher-earning parent, but earnings from the child's own skill or talent, such as the Rs 30,000 performance fee, are excluded, leaving only the fixed deposit interest.

  1. ARs 78,000
  2. BRs 48,000Correct
  3. CRs 30,000
  4. DNil

Explanation

A minor child's income is clubbed with the income of the parent with the higher income, here Meena, but income earned through the child's own skill, talent or specific knowledge or experience is excluded. So the Rs 30,000 stage fee stays with Tara. Only the Rs 48,000 interest is clubbed. Rs 78,000 wrongly includes the skill-based income.

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