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For tax year 2026-27, a parent who has opted out of the default regime includes a minor child’s investment income in his own income under section 99. How much may he exclude under Schedule III of…

Question and options

For tax year 2026-27, a parent who has opted out of the default regime includes a minor child’s investment income in his own income under section 99. How much may he exclude under Schedule III of the Income-tax Act, 2025?

  1. Up to ₹5,000 for each child

  2. Up to ₹1,500 for each child

  3. Up to ₹3,000 for each child

  4. Up to ₹1,500 for all children together

Answer and explanation

Correct answer: B - Up to ₹1,500 for each child

Schedule III (Table item 17) of the Income-tax Act, 2025 excludes the income included under section 99(1)(c) up to ₹1,500 for each minor child, so the exclusion is the lower of ₹1,500 and the child’s income. The exclusion is not available under the default regime in section 202.

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