Income tax: My son, aged 8, works in TV serials. How his revenue can be taxed

My son aged 8 years works as baby artist in TV serials. He earns round seven lakhs yearly from appearing in TV serials and for modeling.  In addition to the above revenue he has additionally earned curiosity of Rs. 1,50,000/- from deposits made in his identify. Will he liable to pay any revenue tax on it or his revenue is required to be included in my revenue as my revenue is larger than my spouse’s revenue.?

As per the clubbing provisions of the regulation of Section 64(1A) of the Income Tax Act any revenue arising or accruing to a minor is required to be clubbed and included within the revenue of the dad or mum whose revenue is larger. However, in case the revenue is earned by the minor baby by guide work or by utilizing his particular expertise and experience the clubbing provisions don’t apply and such revenue will get taxed within the fingers of the kid. Since the revenue earned by your son by appearing and modelling exceeds taxable restrict, he has to file and ITR and pay tax on it. 

However, as a consequence of clubbing provision, the curiosity on fastened deposit needs to be clubbed along with your revenue as your revenue is larger than your spouse’s revenue. Please observe that after the revenue of such minor baby is clubbed with the revenue of a selected dad or mum it continues to be so clubbed with the revenue of such dad or mum even when the revenue of such dad or mum turns into decrease than the revenue of the opposite dad or mum. Please observe that there’s an exemption upto Rs. 1500/- per baby so the revenue of your son to be included in your  revenue shall be Rs. 1,48,500/-.

Balwant Jain is a tax and funding skilled and will be reached on jainbalwant@gmail.com and @jainbalwant on Twitter.

Subscribe to Mint Newsletters

* Enter a sound e mail

* Thank you for subscribing to our publication.

Never miss a narrative! Stay related and knowledgeable with Mint.
Download
our App Now!!