IF an income is earned by a minor using his own talent, experience and manual labour, then as per sec 64(1A), the income neednot be clubbed with the income of parents... so how would that income be assessed?
12 Replies
CA Anil Sah
(DGM(F), PSU)
(139 Points)
Replied 08 March 2010
IN THIS CASE THE INCOME OF MINOR ,CHARGBLE IN THE HAND OF SUCH MINOR . A SEPREATE RETURN OF INCOME SHALL BE FILLED IN NAME OF MINOR IN INCOME TAX DEPARTMENT .
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 08 March 2010
Non-clubbing of Minor's Income
Clubbing provision is not applicable in the following cases:
- If the minor is suffering from permanent physical disability.
- If the minor earns through manual work or by using skills, experience, talent or specialised knowledge. It will be taxed as her own income.
Exception: Income up on such incomes are clubbed with parents, like interest received from bank if the money is deposited.
llllVICTORllll
(Internal Auditor)
(511 Points)
Replied 08 March 2010
so can it be concluded that income of minor in my case has to be furnished in seperate return in the name of the minor?
Gita Iyer
(Specialist)
(135 Points)
Replied 08 March 2010
minors return has to be filed separately in such case!!
Copy of school leaving certificate or matriculation certificate or degree of a recognized educational institution or depository account or credit card or bank account or water bill or ration card or property tax assessment order or passport or voter identity card or driving license or certificate of identity signed by a MP or an MLA or a Municipal Councilor or a Gazetted Officer;
In case the PAN applicant is a minor, any of above documents of any of the parents or guardian of such minor shall serve as proof of Identity; (source www.incometaxindia.gov.in/PAN/Overview.asp)
ANKIT JAIN
(ARTICLE)
(38 Points)
Replied 08 March 2010
If minor income is exempt then also minor income will be clubbed in either of the parents income as a exempt income
Dintakurthi Tirumala
(CA FINAL)
(15994 Points)
Replied 08 March 2010
Yes, that minor's income should not clubed to thier parents which is araises depending on their tallent. As per my opinon the income araised by a minor on his tallent should be minor's income but minor need not to be file income tax return as per section 64 of income tax act and as per Indian contract act 1872. because any dealings,contracts,gurentees etc... by a minor is viod and illegal. it's only my opinon please correct me. if my opinon was wrong. Thank you
OM SAI SRI SAI JAI JAI SAI
manish
(Article Assitant)
(358 Points)
Replied 08 March 2010
Yes minor may be have the pan no. and in the above case minor should prepare the return of income and show that income which he get on the basis of own self.
Gaurav sharma
(PCC-Article Assistant)
(36 Points)
Replied 08 March 2010
ya the income would not be clubbed and separate return will be filed in the name of child "but the child can not sign the return the parents would sign the return on behalf of child"
preeti
(student)
(143 Points)
Replied 08 March 2010
I agree..the income of minor will be taxable in his/her own hands and the parents will represent it in the minor's Return of Income on behalf of the minor.
Bala
(Student)
(498 Points)
Replied 08 March 2010
Minor should file a seperate return which will be signed by his/her parents...Minor cannot sign the return
CA Parth Shah
(Chartered Accountant)
(369 Points)
Replied 09 March 2010
Perfact....very correct answer.
| Originally posted by : ANIL KUMAR | ||
 |
IN THIS CASE THE INCOME OF MINOR ,CHARGBLE IN THE HAND OF SUCH MINOR . A SEPREATE RETURN OF INCOME SHALL BE FILLED IN NAME OF MINOR IN INCOME TAX DEPARTMENT . |
 |
Recent Topics
- GST registration -notice
- GSTIN Suspended Form GST Reg 17
- Request for GST Clarification regarding ITC
- Is Capital Gain exemption available for Property a
- EPF CONTRIBUION BY EMPLOYER
- Letter of credit -seller procedure
- Filling form 26 QB
- RPT AND ITC ISSUE
- Tax Liability and ITC Summary related Issues
- REQUIRED FORMAT FOR AMENDMENT TO PARTNERSHIP DEED
Related Threads
CAclubindia
