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RAJESH KHANNA (SALES CUM ACCOUNT EXECUTIVE) (148 Points)

17 July 2016

IS INCOME OF CHILDREN INCLUDED IN THE INCOME OF FATHER WHILE COMPUTING THE INCOME TAX RETURN FOR FATHER.IF SO UNDER WHICH SECTION OF INCOME TAX ACT. INCASE MOTHER IS HOUSEWIFE CAN THE INCOME BE CLUBBED IN THE INCOME OF MOTHER

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10 Replies

santu sen (Accounts officer) (73 Points)
Replied 17 July 2016

Any income received by minor child will be added with the income of mother or father who has the higher income .

santu sen (Accounts officer) (73 Points)
Replied 17 July 2016

Income generated in the name of minor child is exempt only up to Rs 1,500 per month. Any amount over and above this will be clubbed in the income of the parent whose income is higher.

santu sen (Accounts officer) (73 Points)
Replied 17 July 2016

section 64(1A)

RAJESH KHANNA (SALES CUM ACCOUNT EXECUTIVE) (148 Points)
Replied 17 July 2016

THANKS FOR YOUR REPLY. BUT SUPPOSE FATHER DOES NOT WANT TO CLUB THE INCOME OF HIS MINOR CHILD AS HIS TAX LIABILITY AFTER CLUBBING INCOME OF THEIR CHILDREN COMES TO APPROX.RS.1,90,000/- AFTER MAKING ALL DEDUCTIONS UNDER 80 C 80D. WHERE AS WITHOUT CLUBBING INCOME OF MINOR CHILDREN HIS TAX LIABILITY FOR THE F.Y.2016-17 COMES TIO RD.40,000/- ONLY. BUT IN THE PREVIOUS YEAR 2015-2016 IT RETURN FATHER HAD CLUBBED THE INCOME OF HIS MNOR CHILD. PLEASE LET ME KNOW CAN FATHER FILE HIS IT RETURN WITHOUT CLUBBING THE INCOME OF HIS MINOR CHILDREN IN ORDER TO REDUCE HIS TX LIABILITY FOR THE FY 2016-2017. AS HE HAS TO FILE HIS RETURN BEFORE 31.07.2016.KINDLY ADVISE

santu sen (Accounts officer) (73 Points)
Replied 17 July 2016

if minor earns his income out of his skill or application of talent , then such income is taxable in the hands of minor child and no need to club in parents income .

For tax avoidance , u want to escape from clubbing of minor income which non compliance of income tax act.

RAJESH KHANNA (SALES CUM ACCOUNT EXECUTIVE) (148 Points)
Replied 18 July 2016

PLEASE CLARIFY EXEMPTION LIMITE OF RS. 1500/- PERMONTH OR PER CHILD???? IT THINK IT SHOULD BE RS. 1500/-PER CHILD NOT PER MONTH. KINDLY CLARIFY.

REGARDS

RAJESH

RAJESH KHANNA (SALES CUM ACCOUNT EXECUTIVE) (148 Points)
Replied 18 July 2016

PLEASE CLARIFY EXEMPTION LIMITE OF RS. 1500/- PERMONTH OR PER CHILD???? IT THINK IT SHOULD BE RS. 1500/-PER CHILD NOT PER MONTH. KINDLY CLARIFY.

REGARDS

RAJESH

18.07.2016

RAJESH KHANNA (SALES CUM ACCOUNT EXECUTIVE) (148 Points)
Replied 18 July 2016

Dear Sir,

Thanks for your reply. Kindly clarify as to whether Exemption limit for clubbing minor income is Rs. 1500 per month or Rs. 1500 per annum per child. Kindly clarify and under which section of Income taX????????