Income tax return: Taxation rules to know while filing ITR of a minor child

Income tax return: Taxation rules to know while filing ITR of a minor child

Income tax return: There was a time when children were not met with many income opportunities. Nowadays, a large number of income opportunities have emerged that offer part-time jobs for a minor. But when there is income, there is also tax liability. According to tax and investment experts, a minor can have two types of income – earned income and unearned income. In both cases, an income tax return (ITR) can be submitted with a set of rules that are applicable to a minor working individual.

Speaking about income tax return (ITR) for a minor serving individual, SEBI-registered tax and investment expert Jitendra Solanki said: “If someone earns, the serving individual can file an income tax return. In India, there is no age limit for ITR reporting. But for For a less-deserving individual, there can be two types of earnings – money earned on their own and money earned from assets that can be categorized as unearned money. ” He said that different income tax rules will apply to earned and unearned money when filing ITR for a minor serving individual.

Regarding the ITR reporting rules for a minor, Amit Gupta, CEO of SAG Infotech – a SEBI-registered company that provides tax solutions, said, “When it comes to filing the tax, a minor can also report, if their earnings amount is over ₹15,000 per month. The salary can be paid or not, it makes no difference. “

Regarding the ITR deposit rules for earned money and unearned money, Amit Gupta from SAG Infotech said, “When a child, who is a minor, can participate in any competition, TV show or sports tournament and acquire the prize awarded in sum, or even if the minor child has some part-time job or perhaps has his own business, then it can be called earned money.If the minor child does not receive money from his hard work or actions, however, they earn money as a form of gift from all events from their benefactors as their relatives, grandparents, family friends, and thus how, if the income they received is categorized into unearned money. “

“A child who earns must file his own income tax should be under the age of 18. But as long as the child is the parent’s responsibility, their guardian can also file on behalf of the child. Let us understand this if your child is still not included in the majority and get an income over Rs.1500 per month, because of which you have to pay the tax on their behalf, says Amit Gupta at SAG Infotech.

Tax and investment experts listed the following important facts regarding ITR filing of a minor:

1]Terms such as annual income, pension fund, taxable income, health insurance and more similar can be developed for minors before they submit their own tax returns;

2]Children under the age of 18 should have their own tax return forms;

3]Children should receive a photocopy of their expenses and income during each financial year as a reference and for the purpose of securing;

4]When filling out the return form, it is important to correctly write the taxpayer’s name together with the tax registration number;

5]It is important to remember that tax registration should be very secure; and

6]The most reliable and possible process for completing ITR for a minor is to engage in the services of a tax specialist.

Source By: tamilbloggers