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Income of a Minor

Chandra Kant Parmar (M.Com.) (76 Points)

03 September 2010

Please suggest the following situation:-

Gift received by a minor of Rs.75,000 will be clubbed in whose hands? Parent or Minor?

Suppose the gift comes from ----a) Relatives and b) non-relatives

Thanks in advance...

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Vicky (CA, LCS,MCOM,) (136 Points)
Replied 03 September 2010

gift received from relatives is exempt u/s 56.so it will not be taxable either in the hands of parents or minor

gift received from non relative originally taxable u/s 56 will be clubbed in the hands of parents u/s64(1A).it will be clubbed in the hands of such parent whose income before including such gifted income is greater.however as per sec 10(32) standard deduction of 1500 can be claimed by parent in respect of each minors child clubbed income.the parent in whose hands such income is clubbed shd show such income under the head income from other sources.

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