All income which arises or accrues to the minor shall be clubbed in the income of his parent. However, the income derived by the minor from manual work or from any activity involving his talent or specialised knowledge and experience and income of minor child suffering from any disability of the nature specified in section 80U will not be included in the income of his parent.
The income of minor will be included in the income of that parent whose total income [excluding the income includible under section 64(1A) is greater and where the marriage of the parents does not subsist, the income of minor will be included in the income of that parent who maintains the minor child in the relevant previous year. Where any such income is once included in the total income of either parent, any such income arising in any succeeding year shall not be included in the total income of the other parent, unless the Assessing Officer is satisfied (after giving that parent an opportunity of being heard) that it is necessary so to do.
In case the income of an individual includes the income of his minor child in terms of section 64(1A), such individual shall be entitled to an exemption of Rs. 1,500/- respect of each minor child if the income of such minor includible under section 64(1A) exceeds that amount. Where, however, the income of any minor so includible is less Rs. 1,500/-, the aforesaid exemption shall be restricted to the income so included in the total income of the individual.