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IT return file by minor

CA JIGNESH (C.A.) (83 Points)

16 September 2011

Dear Prof.Collegues.

Please guide me about, how to file IT Return in case of minor (17 Years) who is having Textile Commission Income.

and return by whom to be signed.

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10 Replies

CA Anjali Aswal (CA) (215 Points)
Replied 16 September 2011

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

If the income of the minor is as per the above two exceptions than only return can be filed in the name of the minor.

As per my view parent/guardian can sign the return.

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 16 September 2011

As per sec 140 clause( f ) for any other person the return is to be signed by that person or by some person competent to act on his behalf.

In this case since minor cannot sign by himself ,and if income is not exempted and is taxable then his guardian will be an appropriate competent person to sign the return on his behalf.

CORRECT ME IF I AM WRONG.

CA Anshu Agarwal (B€ @LW@¥$ ]-[@Pp¥) (1832 Points)
Replied 16 September 2011

return shall be filed by either of parent or legal gardian

RISHABH JAIN (Chartered Accountant In Practice) (65 Points)
Replied 16 September 2011

As per Sec 64(1A) of Income Tax Act, income of minor is clubbed in the income of either of his parents whose total income (excluding the income of minor) is higher.

Exception : If such commission income is earned by the minor on account of any

(a) manual work done by him ; or

(b) activity involving application of his skill, talent or specialised knowledge and experience."

then the return is to be filed in the name of minor and it wil be signed by either of his parents or legal gardian...

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 16 September 2011

@ Rishabh What if both the parents are not having any income and the minor has such income and needs to be file Return of income den how it is clubbed?

Agrred in dis case any of the parent can sign bt wat abt clubbing part as mentioned by you?

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 16 September 2011

Originally posted by : CA JIGNESH
	Dear Prof.Collegues. Please guide me about, how to file IT Return in case of minor (17 Years) who is having Textile Commission Income. and return by whom to be signed.

such income would be clubbed in the hands of parents who ever has higher income.

commission income is not a specialized professional income performed by the minor, so the income would be treated clubbed with parent who has higher income.

if the minor has earned the income with his own skill of prefession, like stage show, drama, acting etc, then only minor is eligible to file the income tax return, in individual capacity ( signed by natural guardian/parent)

srinivass (CA Final) (2466 Points)
Replied 17 September 2011

Originally posted by : U S Sharma
	Originally posted by : CA JIGNESH Dear Prof.Collegues. Please guide me about, how to file IT Return in case of minor (17 Years) who is having Textile Commission Income. and return by whom to be signed. such income would be clubbed in the hands of parents who ever has higher income. commission income is not a specialized professional income performed by the minor, so the income would be treated clubbed with parent who has higher income. if the minor has earned the income with his own skill of prefession, like stage show, drama, acting etc, then only minor is eligible to file the income tax return, in individual capacity ( signed by natural guardian/parent)

(Guest)

Though the querist has not asked the above question but still to remove the confusion

Textile commision income earned by minor child can be taxable in the hands of minor child. This commission income might involve manual work or experience.

Who should sign the return of income of minor child

The return of minor child shall be signed by his legal guardian. (Legal guardian can also be other than parents)