02 August 2010
What is the treatment in following two cases: 1.interest from bank received by minor child on deposit made out of her income from special talent.
2.gift received by minor child from his mother's friend.
02 August 2010
1).interest from bank received by minor child on deposit made out of her income from special talent ----- interst should be club in father/mother income becouse interst income is not earn by special talent by ninor child.
02 August 2010
Case VI: When Individual is assessable in respect of income of his Minor Child [Sec. 64(1A)]
*Taxability: In case an Income is earned by a child before his attainment of 18 years of age, then such income of child will be included in the income of the parent whose taxable income, excluding income includible u/s 64(1A), is GREATER . *Exemption u/s 10(32): In case of inclusion of income earned by a minor in the parent’s income, exemption of Rs. 1,500/- per Child per Annum or Income earned by child whichever is lower. *Non Taxability of Income in certain cases:
1.Income of a Minor Child suffering from any disability specified u/s 80U . 2.Income of a Minor Child on account of any Manual work. 3.Income of a Minor Child on account of any activity involving his Skill, Talent or Specialized knowledge & Experience.
PLEASE NOTE:
*Child herein includes both Step child as well as Adopted child. *If both the Parents of the minor child are not alive and such minor is maintained by a guardian, then guardian of the minor child should file a return of income on behalf of the minor. In no case will the income be clubbed in the hands of the Guardian. *Where child attains majority during the previous year part of the income earned by the child during his minor stage shall be clubbed in the hands of the Parent.
02 August 2010
i agree with ravindra sir... since interest is not earned out of spl talent by child it would be clubbed. only the income earned by the child would be exempt
02 August 2010
In my opinion interest from bank received by minor child will not be clubbed in the hands of father/mother. If the money earned itself is taxable in the hand of minor child then how income related to such money will be clubbed in the hands of parents.
CAclubindia
