A minor child with a disability of the nature specified in section 154 of the Income-tax Act, 2025 earns investment income. How is it treated under section 99?
Question and options
A minor child with a disability of the nature specified in section 154 of the Income-tax Act, 2025 earns investment income. How is it treated under section 99?
Clubbed, after excluding ₹1,500 for the child
Clubbed with the parent who maintains the child
Not clubbed; assessed in the minor’s own hands
Clubbed with the parent with the greater income
Answer and explanation
Section 99(1)(c)(iii) of the Income-tax Act, 2025 excludes from clubbing the income of a minor child suffering from a disability of the nature specified in section 154. The income is therefore assessed in the minor’s own hands; the ₹1,500 exclusion applies only to income that is clubbed.
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