30 October 2012
Can any one please help me to understand the tax treatment of income of minor child whose parents are also minor... If Parents are also minor then in such case in whose hands the income of such minor child will be clubbed???
30 October 2012
In my opinion income of minor child has to be clubbed with the income of the parent, whose income is higher and entitled to exemption of Rs. 1,500 per annum(p.a.). Again parental income will be clubbed in his/her parent income, whose income is higher and can claim exemption Rs.1500.
Note that Child marriage is of course banned in India and legal action will be initiated.
30 October 2012
No this is just my doubt. And CA Dileep sir according to me, if the act is banned or illegal then the entire earning will be taken away by the Government. and therefore the clubbing provisions will fail to apply.
30 October 2012
Mr Pranay., as it is just doubt ., it is a rare case., though found in our families., but as per law it is illegal., that a minor having a minor child., supposing that it is an exception., then it will be taxed in the hands of their grand parents whose total income is highest of the 4(i.e. parents of the father side and parents of mother side)
CAclubindia
