Advocate Prakash S Kanudawala

Questions Answered by Advocate Prakash S Kanudawala

Q: I am a minor if I earn do I have to pay tax

I am 15 years old boy. I want to ask that can I do an online job. My friends are earning 50000 per month. - Can I do online jobs? - Does I need to pay tax?

Advocate Prakash S Kanudawala answered
Yes You can do online JOB and if you are earning Rs.50000 Per month then you need to pay tax as Major Individual need to pay. You can get the Benefit of basic exemption limit and 80C benefits also.Further if your friends do not pay then they are not following the Income Tax law so they would get demand Notice any time from the Government.Please go through the below mentioned detailed Provision.How your minor Childs income is taxable in India – Section 64 (1A) of IT Act, 1961ncome of a minor child is clubbed in the hands of parent. However, if it arise from manual work or from any activity involving his talent or specialized knowledge and experience and such amount generated by a minor child who is suering from any disability of the nature specied in section 80U then it will not be included in the hands of his parents.If income of minor child is to be clubbed then it will be included in the hands of his mother or father whose income is higher excluding the clubbed amount of minor child.If both mother and fathers are not married then the income of such minor child is to be clubbed in the hands of that parent who maintains the minor child during the previous year.   If the income of minor child has been clubbed with either of the parent’s then it will con-tinue to be clubbed in succeeding nancial year. Such clubbing can be changed by the as-sessing ocer after giving an opportunity of being heard to the taxpayer.Exemption of Rs. 1, 500 is allowed for clubbing of minor child’s income with the parents. If the income of a minor child is less than Rs. 1, 500 then clubbing will be restricted to such lesser amount and if it is higher than Rs. 1, 500 then clubbing will be restricted to Rs. 1, 500. The exemption of Rs. 1, 500 is per minor child.FAQ on ClubbingAt which point I should add the income of my minor child ?Your minor child’s income gets added to your respective head in which you and your minor child have derived it. For example if the minor child has generated certain interest from bank’s xed deposit then it will get added to other sources head.My child is working as an artist in lms. Can you pleas let me know if I have to in-clude his income ?ection 64 (1A) states that if a minor child has generated anything because of his skill or tal-ent then it will not be included in the hands of parents. In your case, it will not be clubbed in your hand.But your minor child will be taxable if he exceeds the basic exemption limit of paying tax (for assessment year 2013-2014 the basic exemption limit is Rs. 2, 00,000).My minor child has generated income from his specic talent in cricket. He is not li-able to pay tax as it does not exceed the basic exemption limit. Now he has derived interest by keeping the money in a xed deposit account of bank. Will this interest amount get clubbed?Yes. The interest derived from the bank xed deposit will get clubbed with the parent’s. It will be clubbed with the child’s mother or father whose income is higher before including the interest amount.You are eligible for an exemption of Rs.1, 500 or the amount that your minor child’s has generated which ever is lower.I have adopted a child and because of his unique talent he is generating an amount of Rs. 2, 50,000 every year by acting as an artist in lms and TV media. How he will be taxable and let me know if it will be included with my income?Clubbing provision under section 64 (1A) will not be applicable if the minor child has gener-ated any amount from manual work or from any activity involving application of skills, tal-ent or specialized knowledge and experience. Clubbing provision will also not be attracted if such minor child is suering from any disability specied under section 80U of IT act.It will not get clubbed in your hand as he is generating it from his artist work and it comes due to his talent and skills.But your child is taxable and he has to pay tax as he has crossed the basic exemption limit of Rs. 2, 00,000 (for assessment year 2013-2014).  You can invest up to a maximum of Rs. 1, 00,000 in to a public provident fund opened up in your minor son’s account to get tax de-duction. And by doing this your minor son will not be paying any tax.I have two minor child and both are generating interest from saving bank deposits. How much exemption I can avail from such clubbing ?You can get exemption of Rs. 1, 500 per minor child. So the total exemption for your will be Rs. 3, 000I have opened a xed deposit with a nationalized bank in the name of my minor son. This nancial year we have generated interest out of the xed deposit. Is the inter-est amount derived from such xed deposit to be included in my taxable income?Yes, it has not been specically excluded in clubbing provision of IT act. So the entire inter-est amount will be taxable in your hand and as such will be added in your hand.My son is participating in stage show due to his singing talent. Will his income get added in my hand ?No, your son has a specic talent and any amount derived because of such talent will not be clubbed in your hand.

Q: Sharing profit with hospital after deduction of TDS does effect tax

I have tied up with pvt.ltd.hospital for running pharmacy on profit sharing basis. At the end of every month i gove profit to hospital after deducting t.d.s...do i get any incometax objectin in this model?

Advocate Prakash S Kanudawala answered
Dear sirWe have read your question but you have not mentioned following details to guide you.1.Whether you are a Individual or Firm or company.2.Further What is Agreement between you and Pvt.Limited Hospital?3.Further In which Mode you are paying to hospital like commission basis or profit sharing basis that can be known to us by agreement between both of you.4.Further What is the Objection from Income Tax?5.Further Discribe the full model of your Business with the Company.As we do not have all these answers so we do not answer you properly so just share all these details so that we can guide you properly.Thanks