Yes, minor child's income is taxable.
For example- a minor child may earn interest income . Such income is to be clubbed with his/her parents. The income of minor child is to be clubbed with the parent with the higher income. However, if the parents are separated then clubbing will take place in the hands of the parent who has the custody of the child.
However, there are some exceptions in which minor’s income will be taxable in his own hands:
- Earns any income using his/her specialized skills
- Suffering from any disability specified under section 80U such as blindness or autism
Parents are entitled to an exemption of Rs.1500 in respect of each minor child. (Max 2 children)