Clubbing of income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2014 TDS is deducted u/s 194J on royalty received by minor child. Royalty is received for a book written by the minor. Minor child has no PAN. So the PAN of his father is provided. 26AS of father shows this income and TDS. Father is a professional and his accounts are regularly maintained. Is clubbing of income applicable in this case? How can we treat the royalty income and TDS in accounts of his father and in income tax? Is there any allowable expense in the case of royalty income? Please explain with relevant sections.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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21 August 2014 if father is having higher gross total income as compared to his mother then yes clubbing will be applicable and also tds can be claimed on such amount clubbed by father

Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2014 can it be treated as earning income from own skill by the minor?

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CA UMESH DULAL

CA UMESH DULAL (Expert)
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21 August 2014 Yes It is to be treated as earning from own skill by minor.

You should have got PAN of minor and TDS would have been deducted on minor.

This income is not clubbed in parents income.

Rupesh Jain

Rupesh Jain (Expert)
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21 August 2014 PAN will apply by the minor and file his income tax return due to clubbing provision apply on minor income but income not earn by the minor by physical labour or technical skill etc.