When the income of a minor child is included in the total income of the mother or father under section…
Under section 11 read with Schedule III (Table: Sl. No. 17) of the Income-tax Act, 2025 (formerly s.10(32) of the Income-tax Act, 1961), income includible in an individual's…
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When the income of a minor child is included in the total income of the mother or father under section 99(1)(c) of the Income-tax Act, 2025, how much of such income is excluded from the parent's total income, where the parent has opted out of the new tax regime under section 202(4)?
Answer and explanation
Correct answer A
Under section 11 read with Schedule III (Table: Sl. No. 17) of the Income-tax Act, 2025 (formerly s.10(32) of the Income-tax Act, 1961), income includible in an individual's total income under section 99(1)(c) is excluded to the extent it does not exceed ₹ 1,500 in respect of each minor child whose income is so included. The parent therefore gets an exclusion of ₹ 1,500 per child, or the actual income clubbed if that is less.
₹ 2,000 is not the statutory limit, and the Act does not exclude the entire clubbed income. "No amount is excluded" would be the position only under the default new tax regime, because section 202(2)(a)(i) denies the Schedule III (Table: Sl. No. 17) exemption there; the parent in this question has opted out of that regime.
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