Whether a minor should file income tax return, or his parents can only file such return after clubbing provisions..
and if a minor can file his return is it beneficial as regards to tax payment...
3 Replies
Pankaj Gupta
(CA final & M.Com Student)
(3358 Points)
Replied 26 January 2013
The parents are required to club the income of minor in their own return only if the clubbing provisions apply on the income of minor. Like in case where the minor do not earn the income by putting his own efforts.
..
.
If in case the clubbing provisions do not apply then the minor should file his own return. Such return should be signed by the guardian of such minor.
And ofcourse it is beneficial for the minor in case he file his own return. Because he gets the exemption of maximum exemption limit and the remaining income gets taxed in slab rates.
kavitha
(studying final)
(830 Points)
Replied 26 January 2013
1.First of all clubbing provisions are applicable to minor. ( if the child has not earned income himself)
2. minor's income should be clubbed with the parent who is getting more income.
parent get 1500/- exemption for minor child. ( maximum 2 children)
(Guest)
If a minor has earned with his/her own skills and talent than he should be liable to file his tax return and it is also beneficial for him.
source: https://www.indiantaxupdates.com/2012/10/19/clubbing-of-income-of-minor-section-641a/
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