Section 35 - Amendment of section 64

Inclusion of minor child's income: parental allocation rule with exceptions for manual work and skill based activity.

A new sub section (1A) requires inclusion of all income arising or accruing to a minor child in an individual's total income, excluding income from the minor's manual work and from activities applying the minor's skill, talent or specialised knowledge and experience. The Explanation allocates such includible income to the parent with the higher total income while marriage subsists, or to the parent who maintains the child where marriage does not subsist; once included in one parent's total income it shall not be included in the other parent's income in succeeding years unless the Assessing Officer, after hearing that parent, is satisfied that reallocation is necessary.