Yes, the income of a minor (child below 18 years of age) can be taxed in India. The income of a minor (except a child suffering from a disability)1 is included as part of the total income of the child’s parent.2 The term ‘parent’ here refers to the parent who has the greater income, and the child’s income will not be included in the other parent’s total income. For example if the father earns more income than the mother, then the child’s income will be clubbed with the fathers income. If the parents are not married, then the child’s income will be included in the income of the parent who maintains the child.
A child’s income will not be clubbed with the parent when:
- the child gets income from manual work or
- income from an activity involving application of the child’s skill, talent or specialised knowledge and experience.
- Section 80U, Income Tax Act, 1961
- Section 64, Income Tax Act, 1961