Minor pan card

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Raunak Vora (Querist)

17 September 2014 Does a minor who is having taxable income from his skills and have no parents liable to have P.A.No (permanent account number) ?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

17 September 2014 the ans is no in such case its not taxable at all

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

17 September 2014 Dear Tushar you mean to say a Minor who is earning taxable Income from his own skill need not pay any tax if he has unfortunately lost his parents?

Can you please guide where it is mentioned or reason for this answer by you?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

18 September 2014 Pls refer the provision of sec 64(IA) which says that the income of minor shall be clubbed with that parent whose total income is greater.

This is the only section where minor provisions of clubbing or taxability is concerned other then sec 10(32) which deals with exemption of 1500 per child.

Further pls refer to case of R.P.Sarthy v.CIT (2006) SOT 732 chennai where it was held that

"where minor's income, in case both the parents are not alive, cannot be assessed in the hands of grandparents or any other relatives or even in the hands of minor"

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

18 September 2014 however here if income is earned by minor using his skills then clubbing provisions wont apply and minor shall be liable to pay income tax and must have a valid pan card.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

18 September 2014 Yes. Tushar, now you are correct. Your 1st reply was wrong because it was clearly mentioned that Minor was earning Taxable Income from his own skills.

So in the given case Minor is required to obtain PAN.

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