Section 10(32) Exemption towards income of minor clubbed under section 64(1A) of Income Tax Act, 1961
Exemption under section 10(32) of the Income Tax Act comes into play only when the income of a minor child is clubbed (i.e., added) into the income of his parent in terms of section 64(1A). The exemption provisions of section 10(32) are covered under the present article.
Exemption under section 10(32) is available in case the income of a minor child is clubbed in the total income of his parent as per provisions of section 64(1A). As provisions of section 64(1A) and section 10(32) are interconnected, we need to understand the basics of section 64(1A) of the Income Tax Act.
As per section 64(1A), the income earned by the minor is required to be clubbed in the total income of the parent whose income is higher. However, income earned by the minor on account of any manual work carried out by him or income earned by carrying on the activity which involves the application of skill or talent of the minor is not included/ clubbed.
Thus, in case the income of minor is clubbed in the total income of the parent as per section 64(1A), then the parent with whom the income is clubbed would be eligible to claim exemption available under section 10(32).
The minimum of the following amount is available as an exemption under section 10(32)–
1. INR 1,500 per minor child; or
2. Amount of income included/ clubbed in the income of the parent.
|Salary income||INR 5,00,000|
|ADD||Interest income of son||INR 10,000|
|ADD||Interest income of daughter||INR 8,000|
|LESS||Exemption as per section 10(32)||(INR 3,000)|
|Net Taxable Income||INR 5,15,000|
Table – Articles on Section 10 Exemptions
|1||Section 10(1)– Exemption to Agricultural Income|
|2||Section 10(2) Exemption to amount received by co-parcener from HUF|
|3||Section 10(2A) Exemption towards share of income from firm/LLP|
|4||Exemptions towards interest to non-residents | Section 10(4) & 10(4B)|
|5||Exemption on Tax paid by Govt or Indian concern on certain income of a foreign company|
|6||Section 10(7) Perquisites/allowances exemption to Govt employees serving outside India|
|7||Exemption- Section 10(8A) & section 10(8B) of Income Tax Act|
|8||Exemption towards commuted value of pension Section 10(10A)|
|9||Exemption towards retrenchment compensation received by workman Section 10(10B)|
|10||Section 10(10BC) Exemption towards compensation received on account of any disaster|
|11||Section 10(10C) Exemption of amount received on voluntary retirement|
|12||Exemption towards tax paid by employer on non-monetary perquisites: Section 10(10CC)|
|13||Section 10(10D) Exemption towards amount received under a Life Insurance Policy|
|14||Exemption for amount received from Statutory & Recognized PF|
|15||Exemption for payment from approved superannuation fund Section 10(13)|
|16||Income Tax Exemption on prescribed allowances/ benefits | Section 10(14)|
|17||Section 10(15) Exemption- Interest on Bonds, Debentures, Securities|
|18||Scholarship exemption | Section 10(16) | Income Tax Act 1961|
|19||Exemption towards income for administration of Charitable or Religious Institution|
|20||Section 10(32) Exemption | Income of minor clubbed with parent|
|21||Exemption for dividend income received from Indian Company | Section 10(34)|
|22||Section 10(34A) Exemption towards income received by a shareholder on buy back of shares|
|23||Section 10(35) Exemption towards income received from units|
|24||Section 10(37) Exemption towards Capital Gain arising on Compulsory Acquisition of Urban Agricultural Land|