09 January 2009
Whenever a minor has any income which is attributable to his personal efforts or activities then return of income will be filed in minors name. Examples of such activities are modelling, working in movies or serial or working in any advertisement. In such cases the income can not be clubbed but will be treated as independent income of the minor.
10 January 2009
Under the Income Tax Act, a child below 18 years of age is treated as a minor and his income is clubbed with the income of the parent (parents living together) whose income is higher. However, this relates to income that the child has earned without using his talent or knowledge—such as interest earned from an investment made in the child’s name.
In case where the child has earned income by working or by application of his skills, talent or specialised knowledge and experience then it is not clubbed with parent’s income. A separate tax return is to be filed for him.
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