In the present times, teenagers have various job opportunities which assist them to get into the workforce and the essential thing is to provide them with an effective environment. These jobs bring a good amount of money to the minors.
When the child is beneath the age of 18 and is called a minor and poses an income over the taxable slab rate, then the responsibility relies on the parent or the guardian to furnish the taxes.
If the question is about furnishing the taxes then a minor could indeed be furnished when their earning amount exceeds Rs 1500 per month.
Irrespective of whether the salary is earned or not. From this article, you shall find out in what circumstances a parent could claim the ITR of their child.
A minor could furnish two types of income that are known as earned money and unearned money.
A child who makes money via competitions, sports tournaments, or through part-time jobs or any business then it could be called earned money.
Unearned money is when the minor child does not gain any money from any employment or skills. It is a type of income in the form of a gift that is been given by the child’s relatives, grandparents, and friends.
The merger of the income of the parents and their children would not be applicable until their child does not attain its majority.
In this, the term clubbing the money is acknowledged as the mechanism in which collecting the income of the parents including their children. Under the Income-tax Act, if a child obtained the income via business or any part-time job then the received income could be integrated with their guardian’s income. In the case when the mother and father both are salaried then the earned amount of the child could be integrated with the one whose earnings are more than the other.
The major question that arises here is: Do I need to furnish the ITR for my child if I claim for her/him?
Two Cases are Mentioned Beneath the Above Question:
A child who is filing their own income tax as for his/her income must have an age beneath 18. But until the child is the responsibility of the parent, then their guardian could furnish tax on the grounds of the child. Let us know if your child is still not counted beneath the majority and obtains an income exceeding Rs 1500 per month. On the same grounds, you must furnish the tax for them. If the child counts beneath the minority, then the parent would not avail of the child’s ITR (Income Tax Return).
The terms such as yearly income, pension fund, taxable income, medical insurance, etc could make learned to the minors before furnishing their own tax returns. The children beneath the age of 18 must have their own tax return forms.
The children must pose a xerox of their expenditure and the income in each fiscal year for reference and for the purpose to secure.
While setting the return form same is essential to write the assesses name precisely including the tax identification number.
