Minor child income clubbing rules prevent tax avoidance, with exceptions for skill-based earnings, disability, and child's own work. Income of a minor child is clubbed to prevent tax avoidance by diversion of income within the family. Under the new section 99(1)(c), the income of a minor child is included in the hands of the parent with the higher pre-clubbed income where the marriage subsists, or the parent maintaining the child where it does not. Exceptions cover the child's own work, skill-based income, and specified disability, with an exemption available for each minor child so clubbed.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Minor child income clubbing rules prevent tax avoidance, with exceptions for skill-based earnings, disability, and child's own work.
Income of a minor child is clubbed to prevent tax avoidance by diversion of income within the family. Under the new section 99(1)(c), the income of a minor child is included in the hands of the parent with the higher pre-clubbed income where the marriage subsists, or the parent maintaining the child where it does not. Exceptions cover the child's own work, skill-based income, and specified disability, with an exemption available for each minor child so clubbed.
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