The last date for filing income tax, July 31, is very near and only a few days are left for it to end. That’s why it is necessary to file ITR on time. If your son or daughter is not an adult and they earn through YouTube, social media or their talent, hobby or any investment, then it is necessary for parents to file income tax return on their earnings. If this is not done, the Income Tax Department can issue a notice to the parents.
Will parents have to file ITR on child’s property?
According to the rules of the Income Tax Department, the income of a minor child or the money received as a gift, property, investment etc. comes under the ambit of tax. Under Section 64 (1A) of the Income Tax Act, the money of children below the age of 18 years will be clubbed with the parent’s income tax return. This means that the father will have to file ITR on the income or property of the child.
Different rule on earning of disabled child
According to the Income Tax Department, if both the mother and the father of a child file income tax returns, then the details of the child’s earnings or assets will be clubbed with the ITR of the one who earns more. However, if the child is a victim of any kind of disability, his wealth will not be clubbed with the parents’ ITR under section 80U of the Income Tax Act. Rather, a separate ITR will be filed.
Income tax rules in case of orphan child
As per income tax rules, income tax return has to be filed even if an orphan child below the age of 18 years has a taxable asset. A chartered accountant or an income tax firm can be contacted for the filing process. The Income Tax Department has already given the facility of PAN card for minor kids. That’s why the orphan child is not going to face any problem in filing ITR.
