Clubbing of income

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This query is : Resolved

Bhavyesh Mehta (Querist)

08 March 2013 Minor 's Turnover are Rs.1325789 in F.Y 2011-12 & TDS has been deducted on his income. Same way His father 's turnover are Rs 5278850 in F.Y 2011-12 & TDS has been deducted also on it So MInor's income as well as turnover are added in his father 's income? If yes, then it is an audited case? How to claim minor 's TDS?

CA Gaurav Ajit Potdar

CA Gaurav Ajit Potdar (Expert)

08 March 2013 If the minor earns this income by his skills or any physical activity than it is not required to club the same in the hands of his parents.,If not than it will be clubbed hence you have to mention here the nature of minors income.

Bhavyesh Mehta

Bhavyesh Mehta (Querist)

09 March 2013 Minor 's business are tailoring job work Income. Contract with one company that 's why TDS has been deducted. And the business is doing by father using minor's name So, in case Turnover as well as all expenses and profit are club in father 's income? And is it required to do audit? Same business doing by his father also.

Bhavyesh Mehta

Bhavyesh Mehta (Querist)

13 March 2013 Reply as soon as possible

CA Gaurav Ajit Potdar

CA Gaurav Ajit Potdar (Expert)

13 March 2013 Once minors income is clubbed in the hands of its parents it will be taxable in the normal way you can only claim a deduction of Rs 1500 from that.
You can claim refund of TDS by filling return only if TDS is deducted in excess of actual tax liability., which is to be considered after clubbing minors income

Bhavyesh Mehta

Bhavyesh Mehta (Querist)

14 March 2013 Thanks for the reply. But My Doubt is not 100 % clear. I want to know Minor 's turnover as well as income clubbed in parents income? Can we file minor 's return for claiming for Refund? Reply as soon as Possible

CA Gaurav Ajit Potdar

CA Gaurav Ajit Potdar (Expert)

14 March 2013 Total turnover of minor is to be clubbed in parents income no seperate return of minor is required.& minors income will be taxable in the normal manner in the hands of its parents

Bhavyesh Mehta

Bhavyesh Mehta (Querist)

15 March 2013 How to claim TDS in hand of minor? Is TDS also clubbed in parents a/c? Total turnover as well as expenses incurred by minor is also clubbed his parents p&l a/c? If turnover of minor clubbed then it becomes audited case, so please also tell me penalty provision. Giving me suitale feedback as soon as possible

Bhavyesh Mehta

Bhavyesh Mehta (Querist)

16 March 2013 Hey reply as soon as possible

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