Tax implications if a minor turns 18 years n feb. 2014
Kapil Tiwari
(Querist) 01 January 2014
This query is : Resolved
A relative turns 18 years on February 3, 2014. Can he file IT Returns for the AY 2014-2015 (FY 2013-2014) as a major for the full financial year 2013-14 or only for the period 3/2/2014 to 31/3/2014?
Kindly advise if the income of the financial year 2013-2014 has to be split into two categories:
(1) the income that arises during the period upto 2/2/2014 when he was a minor and this income has to be clubbed with the income of the parent;
(2) the income that arises from 3/2/2014 to 31/3/2014 which will be his income as a resident individual (not to be clubbed with the income of the parent).
In the case of a person turning 60 even in February 2014, he will be considered a senior citizen for the full financial year 2013-2014. So, if a child becomes a “major” in February 2014, will he not be a “major” for the full financial year 2013-2014? In this case, there will be significant tax saving as clubbing provisions will not be applicable and the total income will be split into two – that of the parent and that of the son. I will appreciate your opinion alongwith a reference to the applicable section of the Income Tax Act.
Thanks.
ajay sethi
(Expert) 01 January 2014
consult your CA
Anirudh
(Expert) 01 January 2014
Dear Mr. Kapil,
You are right. Once he attains majority during the previous year (irrespective of the date on which he attains majority) he can file a separate return.
The income in such cases will not be split as period prior to and after attainment of majority.
In case he had been admitted to the benefits of any partnership, then he has to elect to continue as a partner after attaining majority, only in that case he will be able to file a separate return, otherwise the income will get clubbed in the hand of his parent.
Rajendra K Goyal
(Expert) 01 January 2014
agree with the expert Anirudh ji.
He can file return as major for the full year.
Kapil Tiwari
(Querist) 02 January 2014
Thank you Ajayji, Anirudhji, Rajendraji and Kalaiselvanji!!
V R SHROFF
(Expert) 02 January 2014
Agreed with the experts opinions.
C. P. CHUGH
(Expert) 07 January 2014
A person who has attained the age of majority at the close of any financial year is required to furnish his return of income for that FY if his/her total income exceeds the maximum amount not chargeable to tax.
Kapil Tiwari
(Querist) 07 January 2014
Well noted Sir, Chughji.
