Income Earned by Child

Do you know how income earned by minors is taxed? In this informative video, we unravel the complexities of taxation on minors' income.

Minors' income can be categorized into two types: earned and unearned. Earned income includes money earned through specialized skills or employment, while unearned income encompasses gifts, interest, and investments made in the minor's name.

While minors are required to file income tax if their earnings exceed the basic exemption limit, they have two options for filing:

1. Filing on their own ITR.
2. Clubbing their income with their parent's income, as per Section 64(1A) of the Income Tax Act.

In cases where a minor's income is less than Rs 1500 per year, it won't be added to the parent's income. However, if the income exceeds Rs 1500 per year, it will be clubbed with the parent's income, and taxes will be paid accordingly.

Calculate your minor child's income with our tax experts