Children Income Tax: Adults i.e. those above 18 years of age have to pay income tax on their income according to the income tax slab.
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Income Tax Rules For Minors: If you invest, you have to pay tax. On the other hand, even if you invest in the name of children, you have to pay tax. Because adults i.e. people above 18 years of age have to pay income tax slab on their income.income tax slab) has to pay income tax accordingly. In today’s time, people do different types of work to meet the needs of themselves and their families to run their livelihood. If someone does a job or does a business, someone becomes an artist or does something else etc., but when we start earning more than the fixed limit, then we have to pay tax to the government. These rules apply to everyone from job profession people.
In such a situation, the question also arises whether the children who are earning, those children also have to pay tax or not? After all, what are the rules regarding this, which it becomes necessary for you to know. Please tell that any income received by a minor child is of two types. Earned means self-earned income and second unearned means such income which the child has not earned himself.
If the child receives any amount in lieu of winning a competition or reality show, participating in a business or doing a part time job, then it will be considered as his earned income. But if he receives any amount as gift from any family member, then it will be considered as unearned income. Bank account opened by the parents in the name of the child or the interest received on the investment has also been included in this category. Due to which the parents have to pay tax on the income of the children.
What are the tax rules regarding children?
Actually, the way the tax rules for big people. Similarly, according to Section 61 (1A) of the Income Tax Act, 1961, all those money, which are received by minor children, come under the ambit of income tax.
In this case tax is applicable
- On investments made in the name of minors.
- saving account.
- Fixed Deposit.
- On the salary etc. of child artists working in films and advertisements.
keep these things in mind
- According to the rules, if a child below 18 years of age is earning more than Rs 1500 in a month, then he is taxed. However, tax is not payable on earning less than Rs 1500 per month.
- Income from various investments made in the name of the children or from their salary etc. is added to the income of the parents of the children. After this, income tax is levied on the total income of the parent according to the prescribed tax slab.
- If the parents of such a child are divorced, who earns, then the child’s income will be added to his income and tax will be charged by law in whose custody the child will be.
This is the rule of children’s PAN card
Minor children can also keep their PAN card. Parents or guardians can apply to get their PAN card made. In fact, if the return of a minor is to be filed separately, then along with PAN card, details of his bank accounts, details of income, mobile phone number and email account will also be required. Only then the return can be filed by creating their login and password on the Income Tax Portal.
English News Headline : Income Tax Applicable on Income of Children.
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