- Vaibhav Sooryavanshi's IPL earnings are taxed in his own name due to his talent-based income
- Income from a minor's skill or manual work is taxed separately, not clubbed with parents' income
- Income from investments in a minor's name is clubbed with the parent earning more income
At 15, Vaibhav Sooryavanshi has achieved what many can only dream of.
The teenage cricket sensation has become one of the biggest stories of IPL 2026. His explosive performances, growing fan following and endorsement deals have reportedly helped him build a net worth of around Rs 7 crore.
But his success raises an interesting question.
Can a minor earn crores and still pay income tax? Or does the tax burden fall on the parents?
The answer lies in a special set of income-tax rules that govern minors in India.
The General Rule: A Minor's Income Taxed Through Parents
Most people assume that if money is earned in a child's name, the child will file taxes separately. That is not always true.
According to tax experts, the Income Tax Act contains “clubbing provisions” that generally add a minor child's income to the income of the parent who earns more.
CA Suresh Surana explained that Section 99 of the Income-tax Act, 2025 (earlier Section 64(1A) of the Income-tax Act, 1961) provides that a minor child's income is generally clubbed with the income of the parent whose total income is higher before such inclusion.
For parents who are separated, the income is clubbed with the parent who maintains the child.
This means that if a parent invests money in a fixed deposit, mutual fund or other asset in the name of a minor child, the resulting income is usually not taxed in the child's hands.
Instead, it gets added to the parent's taxable income.
Why Vaibhav Sooryavanshi Is Different
This is where Vaibhav Sooryavanshi's case becomes interesting. His earnings do not come from passive investments made by parents. They come from his own cricketing abilities.
His IPL contracts, tournament earnings and brand endorsements are directly linked to his talent and performance on the field.
Photo Credit: X/@IPL
Because of that, the tax treatment changes. Surana noted that income earned through a minor's own effort, skill, talent, specialised knowledge or manual work is taxed independently in the child's hands and is not subject to clubbing provisions.
In simple words, Vaibhav's cricket income belongs to him for tax purposes. It is not added to the income of his parents.
The same rule applies to influencers, actors and creators. The exemption is not limited to cricketers.
Many children today earn money through YouTube channels, social media content, acting assignments, singing competitions, esports tournaments and other talent-based activities.
If the income arises because of the child's own skill, knowledge, talent or specialised expertise, it can be taxed separately in the minor's hands.
Mihir Tanna, Associate Director of Direct Tax at SK Patodia & Associates LLP, said clubbing does not apply to income earned through manual work or activities involving the application of a minor's skill, knowledge, talent or experience.
That means a teenage content creator earning through brand collaborations could be treated similarly to a young athlete earning through sports contracts.
What About Money Invested In A Child's Name?
This is where many families make mistakes. Parents often invest in fixed deposits, mutual funds, insurance products and other financial instruments in the names of their children.
According to Surana, taxpayers frequently overlook the fact that income earned in a minor's name is not automatically taxed separately.
In most such cases, the income continues to be clubbed with the parent's income and must be reported accordingly while filing tax returns.
Failing to do so can result in under-reporting of income.
Is There Any Tax Relief Available?
Yes, but only in specific situations.
Tanna pointed out that when a parent's income includes a minor child's income through clubbing provisions, the parent can claim an exemption of Rs 1,500 or the amount of income clubbed, whichever is lower.
Surana added that under the Income-tax Act, 2025, this deduction of Rs 1,500 per minor child is available for up to two children and only when the parent opts for the old tax regime.
When Clubbing Rules Do Not Apply
There are two major exceptions.
First, as in Vaibhav Sooryavanshi's case, income earned through personal skill, talent, knowledge or effort is taxed separately.
Second, income of minors with specified disabilities is also excluded from clubbing provisions, Surana said.
These exceptions ensure that genuine earnings generated by the child remain distinct from the parents' income.
What Changes When The Child Turns 18?
The rules become much simpler. Once a child becomes an adult, clubbing provisions stop applying.
According to Surana, after attaining 18 years of age, all income is taxed directly in the individual's hands, irrespective of the source. The person then becomes responsible for filing income-tax returns and complying with tax obligations independently.
