Under 18 and taxes in India?
Under 18 and taxes in India: Yes, even if you are under 18 years old, you may still be required to pay tax in India if you have income that is taxable.
The Income Tax Act, 1961, does not provide any exemption from tax liability based on age. However, certain deductions and exemptions may be available depending on the source and nature of your income.
It is advisable to consult a tax professional or refer to the Income Tax Act for specific details regarding tax liability for minors.
FAQs:
- Do minors need to pay taxes in India?
Yes, minors can be liable to pay taxes if their income exceeds the basic exemption limit. - What is the basic exemption limit for minors?
For the financial year 2023-24, the basic exemption limit for minors is ₹2.5 lakh. - How is the income of a minor taxed?
A minor’s income is taxed at the same slab rates as adults, but income earned from a parent’s investments may be clubbed with the parent’s income. - Are there any specific tax deductions available for minors?
Minors can claim deductions under sections like 80C, but only for investments made in their name and not clubbed income. - What types of income are taxable for minors?
Income from sources like salary, business, interest, and capital gains is taxable for minors. - How should a minor file their income tax return?
A minor can file a tax return through a guardian or parent, as they may not have the legal capacity to do so independently. - Is it necessary for a minor to file a tax return?
Yes, if a minor’s total income exceeds the basic exemption limit, they must file a tax return. - What happens if a minor doesn’t file a tax return?
Failure to file a tax return when required can result in penalties and interest on the outstanding tax. - Can minors open a bank account for earning income?
Yes, minors can open a bank account with the help of a parent or guardian, and they can earn interest on savings. - What is the age limit for filing tax returns independently?
In India, an individual can file tax returns independently once they reach the age of 18.
For more information, visit this site: https://www.incometax.gov.in/
