Income of Minor Child - (New) Section 99(1)(c) / (Old) Section 64(1A)

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....e child • Income earned because of the child's personal effort is not clubbed. • (ii) Income from application of skill, talent, specialised knowledge or experience • This exception protects income generated by the minor's personal abilities. • (iii) Income of a minor child suffering from specified disability • Clubbing does not apply where the minor child suffers from a disability specified under section 154. • Consequently: • The child's income is assessed separately. • The income is not included in the parent's total income. • The objective is to provide relief and financial independence to disabled children....

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....reater. Exceptions: • Minor child suffering from disability specified under section 80U of the Income Tax Act. • Income earned by minor child, on account of manual work or activity involving application of his skill, talent, specialized knowledge and experience. • If none of the parent is alive, minor shall file the return through legal guardian. There shall be no clubbing. Notes: • The income of the minor child shall be included. • where the marriage of his parents subsists, in the income of that parent whose total income (excluding the income includible under this sub-section) is greater or • where the marriage of his parents does not subsist, in the incom....

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....ncome furnished by him before the date of commencement of the scheme, i.e., 1st July, 1997 ; (c) which has escaped assessment. A person may, therefore, make a disclosure of income for any assessment year including assessment year 1997-98, provided he has either not furnished his return of income or has failed to disclose the income for which the declaration is being made. No disclosure of wealth is allowable under the Voluntary Disclosure of Income Scheme, 1997. (ii) Clarification issued vide Circular No. 754 dated 10.06.1997  Question No. 3: Whether the undisclosed income can be declared by the minor a....

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....held the validity of Section 64(1A) of the Income-tax Act, 1961, finding it within Parliament's legislative competence to prevent tax evasion. The provision, including a minor child's income in the parent's total income, was deemed constitutional under Article 14, as minors can be treated differently for tax purposes. [ Syed Askari Hadi Ali Augustine Imam And Others Versus Union Of India And Others 1993 (9) TMI 55 - Patna High Court ] • The Tribunal concluded that Section 64(1A) does not provide for clubbing the minor's income in the hands of grandparents or any other relatives if both parents are deceased. [ RP Sarathy For Minor M. Pranuthi. Versus Joint Commissioner Of Income-tax. 2005 (9) TMI 2....