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

Vikram, a resident individual, has a minor son Aarav (age 12) and a minor daughter Diya (age 10). For tax year 2026-27, Aarav earned Rs 40,000 from a talent show in which he performed using his own skills. Diya earned interest of Rs 30,000 on a bank deposit funded by her grandfather's gift. Aarav also has bank interest of Rs 25,000. Vikram's income is higher than that of his wife. Assuming the exemption available for each minor child is Rs 1,500, what amount is clubbed in Vikram's total income, before the exemption?

Rs 55,000 is clubbed before the exemption. Aarav's talent-based income of Rs 40,000 is excluded from clubbing, while Diya's interest of Rs 30,000 and Aarav's bank interest of Rs 25,000 are included in the income of the parent with higher income.

  1. ARs 55,000Correct
  2. BRs 95,000
  3. CRs 30,000
  4. DRs 1,00,000 less Rs 3,000

Explanation

Income of a minor child is clubbed with the parent whose income is higher, but not income from manual work or activity involving the child's skill, talent or specialised knowledge. Aarav's Rs 40,000 talent income is excluded and stays with him. Clubbed: Diya's Rs 30,000 plus Aarav's bank interest Rs 25,000 = Rs 55,000. Including the talent income gives Rs 95,000, which is wrong. Exemption is allowed afterwards per child.

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