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.

Provisions of section 10(32) of the Income Tax Act, 1961

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).

Amount of exemption available under section 10(32) of the Income Tax Act

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.

Understanding exemption under section 10(32) with the help of illustration-


  • A being a banker, is earning a salary income of INR 5,00,000, and Mrs. A is a house wife.
  • Son of Mr. A, who is 10 years old (i.e., minor), earned interest income of INR 10,000, whereas, daughter of Mr. A, who is 5 years old (i.e., minor), has earned interest income of INR 8,000.
  • As per provisions of section 64(1A), the interest income earned by both, the son and the daughter, would be clubbed in the total income of Mr. A.
  • Likewise, the exemption available under section 10(32) would be INR 3,000 (i.e., INR 1,500 for each child). Mr. A’s net taxable income would be-
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

Sr. No. Particulars
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

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June 2021