Quick Summary
Claiming credit for TCS of minor in the hands of parent Section 206C of the Act provides for the collection of tax at source (TCS) on business of trading in alcoholic liquor, forest produce, scrap etc. Representations have been received that there is no provision in the Act for allowing credit of TCS to any other person (eg. parent) other than the collectee. 2. For example, funds remitted under the Liberalized Remittance Scheme of the Reserve Bank of India may have been remitted in the name of
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FAQ :
The new provision allows parents to claim credit for Tax Collected at Source (TCS) that has been collected on income earned by their minor children.
This amendment will take effect from the 1st day of January, 2025.
Parents can only claim the credit if the minor's income is being clubbed with the parent's income, as per Section 64(1A) of the Act.
Section 206C of the Act deals with the collection of tax at source (TCS) on specific business transactions like trading in alcoholic liquor, forest produce, and scrap.
The change was introduced because representations were received stating there was no provision for anyone other than the collectee (the minor in this case) to claim credit for TCS.
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