Income earned by a minor child will be taxable in the hands of one of the parents, whichever parent's taxable income (excluding the income of the minor) is higher.
In case the income of an individual includes the income of his/her minor child, such an individual can claim an exemption under section 10(32)) of Rs. 1,500 or income of minor so clubbed, whichever is less.
However, no clubbing will be attracted if the income earned by the minor is due to his /her expertise or he is disabled. No clubbing in the case of a minor married daughter.
Where separation has taken place between the parents then clubbing will take place in the hands of the parent maintaining the child.