In computing the total income of an individual, there shall be included all such income as arises or accrues to his minor child. Therefore, the income of a minor child is to be clubbed in the hands of either of his parents.
Provisions of Section 64(1A)
The income shall be clubbed in the hands of that parent whose total income (excluding the income of the minor) is greater. If the marriage of his parents does not subsist, the income shall be clubbed in the hands of that parent who maintains the minor child in the previous year.
Where any 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.
Where the income of a minor child has been included in the total income of a parent, such parent shall be entitled to an exemption to the extent of such income or ₹1,500, whichever is less, in respect of each minor child whose income is so included.
In a particular assessment year, income of the other parent was higher than that of the parent in whose assessment the income of the minor has been included in the past, whether there was sufficient ground for changing the mode of assessment of the income of the minor, it was held unless there was some compelling circumstance apart from the benefits to the Revenue, the mode of clubbing cannot be changed by the ITO. [CIT v Vairapra Kasam (A.) (1999) 238 ITR 568 (Mad)]