If your child also earns money from Instagram, YouTube or lottery game, then this news is useful for you. Gone are the times when a job was required to earn money. Today there are many sources of earning money. Be it children or old people, they earn lakhs of rupees just sitting at home. At the same time, today’s children also start earning at an early age. Recently a boy named Mayank has won prize money of Rs 1 crore in Kaun Banega Crorepati.
After which questions have started being raised that who will pay tax on this income? Or are children’s earnings also taxable? This is a common question that comes to everyone’s mind. So let us tell you today who pays tax on the miner’s earnings and how much tax…
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What are the rules of income tax?
The rules of income related to children are explained in Section 64 (1A) of the Income Tax Act. It is clearly stated in this that the child’s earnings will be linked with what. Apart from this, exemption on children’s earnings under income tax provisions has also been mentioned. Whether this earning is done through lottery or TikTok or other social media platforms.
With whom will the earnings be linked?
According to Balwant Jain, an expert in tax matters, if the child is below 18 years of age, then his earnings will be directly linked with those of his parents. This earning is seen in two ways, earned income and unearned income. Under Section 64(1A) of Income Tax, if the child has won money in lottery or has earned money through social media platforms or any other means, then it will be included in earned income. Similarly, if there is any investment in the name of the child and money is received as interest on it, then it is considered as unearned income.
ITR filing will be necessary
If your child is earning through internet, games or any other means, then it will also be necessary for him to file minor ITR. This means that parents will also have to provide details of their child’s earnings while filing their returns. Obviously, tax on this income will have to be paid in the same slab at which an adult person has to pay.
How much tax exemption will you get?
Some tax exemptions are also given to minors. Under Section 10(32), the annual income of a child up to Rs 1500 has been kept out of the purview of tax. If there is any income above this, it will be added to the income of the parents under section 64(1A). This means that if a minor earns money through TikTok, YouTube or any other medium, then the same income tax rules will apply.
What are the rules in case of lottery?
If a minor wins money in lottery, as Mayank has won in Kaun Banega Crorepati, then tax on it will be deducted first at source. This means that 30 percent TDS will be deducted directly on the lottery. Then 10 percent surcharge will be imposed on this TDS and 4 percent cess will also have to be paid. In this way, you will get only Rs 65.68 lakh in your hand, if a lottery of Rs 1 crore is played. However, this amount will remain completely tax free because TDS has already been deducted on the lottery amount.
Source: www.tv9hindi.com
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