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Can return file by a minor

LALIT KUMAR GANERIWAL (accountant) (241 Points)

06 February 2013

CAN WE FILE RETURN OF A MINOR? IF YES THEN OK / IF NO THEN

IF BANK DEDUCT TDS ON PAN NO. HOW CAN WE CLAIM?

WHY GOVT. OF INDIA ISSUED PAN CARD FOR A MINOR?

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14 Replies

CA Rashmi Gandhi (Chartered Accountant) (86243 Points)
Replied 06 February 2013

income of minor is clubbed with the income of parent whose taxable incomeis more and the tds on such income is also deductible in income of parent

3 Like

CA Shruti Gupta (CMA FINAL CS Final) (1434 Points)
Replied 06 February 2013

if income of minor is becouse of his/her talent as prescribed under act than legal guartion or parents can file return on the behalf of minor and claim tds,

if such income is not because of above reason than as per clubbing rules income of miner will be clubed in the hands of parents whoes income is higher and same person will be eligible for claiming tds.

1 Like

LALIT KUMAR GANERIWAL (accountant) (241 Points)
Replied 06 February 2013

THEN WHY SHOULD ISSUED PAN CARD IN NAME OF MINOR?

CA Shruti Gupta (CMA FINAL CS Final) (1434 Points)
Replied 06 February 2013

because if income is not lible to club than itr file in the name of minor by his/her parents.

1 Like

LALIT KUMAR GANERIWAL (accountant) (241 Points)
Replied 06 February 2013

WHEN IT IS NOT LIBLE?

CA Rashmi Gandhi (Chartered Accountant) (86243 Points)
Replied 06 February 2013

WHEN THE MINOR RECEIVED INCOME DUE TO HIS MANUAL WORK, SKILL, TALENT, EXPERIENCE AND HE IS COVERED UNDER DISABILITY U/S 80U

LALIT KUMAR GANERIWAL (accountant) (241 Points)
Replied 06 February 2013

U/S 80U ONLY FOR DISABLE PERSON NOT IN CASE OF MINOR

CA Shruti Gupta (CMA FINAL CS Final) (1434 Points)
Replied 06 February 2013

[ In computing the total income of any individual, there shall be included all such income as arises or accrues to his minor child.

EXCEPT

not being a minor child suffering from any disability of the nature specified in section 80U]

: Provided that nothing contained in this sub- section shall apply in respect of such income as arises or accrues to the minor child on account of any-

(a) manual work done by him; or

(b) activity involving application of his skill, talent or specialised knowledge and experience. Explanation.- For the purposes of this sub- section, the income of the minor child shall be included,-

(a) where the marriage of his parents subsists, in the income of that parent whose total income (excluding the income includible under this sub- section) is greater; or

(b) where the marriage of his parents does not subsist, in the income of that parent who maintains the minor child in the previous year, and where any such income is once included in the total income of either parent, any such income arising in any succeeding year shall not be included in the total income of the other parent, unless the Assessing Officer is satisfied, after giving that parent an opportunity of being heard, that it is necessary so to do.]

LALIT KUMAR GANERIWAL (accountant) (241 Points)
Replied 06 February 2013

I THINK YOU SHOULD NOT UNDERSTOOD THE PROBLEM

LALIT KUMAR GANERIWAL (accountant) (241 Points)
Replied 06 February 2013

SUPOUSE A IS MINOR FD WITH BANK 10,00,000.00 ON THAT AMOUNT BANK GIVE INTEREST ON THAT DEDUTED TDS & DEPOSITED IN THE PAN NO. OF A MINOR ASSESSEE

THEN HOW WE CLAIM FOR TDS?

CA Harish Negi (Never Say Die) (860 Points)
Replied 06 February 2013

Minor can file IT return and eligible to obtain PAN

SOULAVE JAJODIA (Chartered Accountant) (329 Points)
Replied 06 February 2013

Agree with Harish....

Only if income is actually earned by the minor by way of talent or work done

CA Srikanth Yadav (Chartered Accountant) (3162 Points)
Replied 06 February 2013

Originally posted by : LALIT KUMAR GANERIWAL
	SUPOUSE A IS MINOR FD WITH BANK 10,00,000.00 ON THAT AMOUNT BANK GIVE INTEREST ON THAT DEDUTED TDS & DEPOSITED IN THE PAN NO. OF A MINOR ASSESSEE THEN HOW WE CLAIM FOR TDS?

Interest on FD, which is in the name of the minor, should be included in the income of the parent whose income (before making any clubbing) is greater. But TDS will be deducted in the name of the minor. The same can also be claimed by the parent, provided PAN of Minor is provided to the Bank.