12 September 2014
In case a Minor earns income from investment of his previous year's income which was earned from application of his own skills,How such income will be assessed i.e. in the hands of Minor or his Parent/Guardian?
For ex:- A child artist earns 40 lac in a FY 2013-14 by working as a lead/child actor in Films/ TV shows and In next year i.e. FY 2014-15 Invests 35 lac from his previous years savings in a fixed deposit. Now Interest earned from Fixed deposit will be assess-able and taxable in the hands of Child himself or of his parents?
Also, Guide me out with How Income will be calculated for FY 2013-14 and 2014-15?
15 September 2014
The income invested by him out of his past savings in fixed deposits will be his income and therefore interest earned on FD will not be clubbed with the income of his parents. This is because his entire income in the previous financial year was earned out of his skill.Income tax provisions are very clear on this point. There is no clubbing of income.
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