Clubbing provisions in case of a minor

This query is : Resolved

Pranay Parmar (Querist)
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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???

CA bhargava

CA bhargava (Expert)
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30 October 2012 Is this your doubt or else u have a genuine case of this., because there is a point of involvement of other laws in this

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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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.

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Pranay Parmar

Pranay Parmar (Querist)
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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.

CA bhargava

CA bhargava (Expert)
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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)

Pranay Parmar

Pranay Parmar (Querist)
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20 November 2012 Thank u Mr. Bhargav and Mr. Dileep......