Tax return: Tax rules to know when filing the ITR for a minor child
Income tax declaration: There was a time when children didn’t have many opportunities to earn a living. Today, a good number of income opportunities have emerged which provide a part-time job opportunity for a miner. But, where there is income, there is also a tax liability. According to tax and investment experts, a miner can have two types of income: labor income and capital income. In both cases, the income tax return (ITR) can be filed with a set of rules applicable to a minor natural person.
Speaking on filing a minor’s income tax return (ITR), SEBI registered tax and investment expert Jitendra Solanki said: “If someone wins, then the person who wins can file a tax return. In India, there is no age limit for filing RTI. But, for a minor who earns, there can be two types of income – money earned by himself and money earned from assets that can be classified as unearned money.He said different sets of tax rules will apply to money earned and unearned when filing an ITR of a minor person.
On the ITR filing rules for a minor, Amit Gupta, MD at SAG Infotech – a SEBI-registered tax solutions provider company said, “As far as tax filing is concerned, a minor can also file, if the amount of his earnings is higher ₹15,000 per month. The salary can be made or not, it makes no difference.”
Regarding the ITR deposit rules on earned money and unearned money, Amit Gupta of SAG Infotech said, “When a minor child can participate in any competition, TV show or sports tournament and acquire the prize awarded in sum, or even that the minor child has part-time jobs or can have his own business, then it could be called earned money.If this minor child does not earn money from his hard work or his shares, however, he earns money as a gift from any event from their supporters like their parents, grandparents, family friends, and so how, if the income earned by them is classified as money not won.
“A child who earns income must file their own tax return must be under 18. However, as long as the child is under the care of the parent, their guardian can also do so on behalf of the child. Let’s understand this if your child is still not counted in the majority and receives monthly income above Rs 1500. For this reason you have to pay the taxes on their behalf,” said Amit Gupta of SAG Infotech.
Tax and investment experts have listed the following important facts about the filing of an ITR by a minor:
1]Terms such as annual income, pension fund, taxable income, medical insurance, etc. can be developed for minors before filing their own tax return;
2]Children under 18 must have their own tax return forms;
3]Children should obtain a photocopy of their expenses and income during each financial year for reference and for the purpose of ensuring;
4]When entering the declaration form, it is important to accurately write the name of the taxpayer as well as the tax identification number;
5]It is crucial to keep in mind that tax records must be highly secure; and
6]The most reliable and possible process for completing a minor’s ITR is to hire the services of a tax professional.