Does getting PAN card for a minor help in saving tax ?

POSTED BY Anshul Gupta ON December 15, 2013 12:12 am COMMENTS (13)

Hi All,

I have heard some people get PAN card for their minor child. I would like to know how this helps in saving the tax and financial planning

Regards

13 replies on this article “Does getting PAN card for a minor help in saving tax ?”

  1. KAILASH says:

    There are fixed deposits in the bank for a minor.how can we save TDS

  2. kailash says:

    can parents submit there PAN in minor’s and self bank account

  3. kailashchand says:

    How TDS can save on MINOR’s FIXED DEPOSIT

  4. ashalanshu says:

    Dear Anshul, PAN is meant to track financial transactions be it for a minor or a major or even an artificial judicial person.

    Thanks

    Ashal

  5. Anshul Gupta says:

    Ashal & Karan,

    Your comments totally make sense but what’s the point in allowing a PAN card for a minor unless he/she has earning through his/her skill, talent, etc

    Regards,

  6. CA Karan Batra says:

    In my humble opinion, the clubbing should be done before allowing deductions…

    If deductions are allowed, everyone will start evading taxes through their minor children… So if a clarification comes, the chances are that it will only state that clubbing should be done before deduction…

  7. ashalanshu says:

    Dear Anshul, even the shared link echoes the same thing. Issue is not settled yet.

    Thanks

    Ashal

  8. Anshul Gupta says:

    Dear Ashal,

    I found this article through google –
    http://www.business-standard.com/article/pf/ambiguity-over-clubbing-of-minor-s-incomes-112061400054_1.html

    It talks about clubbing only the net income (after applying all deductions). Can this be done ? Then 1.8 lakh standard deduction should be available.

    Regards

  9. ashalanshu says:

    Dear Anshul, if you are investing under a minor child’s name, the income from such investment ‘ll be clubbed with the higher income earner parent. No tax benefit as section 64 clubbing provisions ‘ll be applicable here.

    thanks

    Ashal

  10. Anshul Gupta says:

    Thanks for your reply Ashal. But there must be some tax saving if I route my investments through a minor child. Everybody knows, a minor has no regular earning.
    Can I avail “no tax” up to 1.8 lakh income benefit if I route my investments through minor ?
    Will the gains earned be added to my income ?

    Regards,

  11. ashalanshu says:

    Dear Anshul, most of investments today require PAN card even if the investor is a minor. There is no Tax benefit merely on having a minor’s PAN card.

    Thanks

    Ashal

    1. mrugesh says:

      so it is mandatory to get a pancard of a minor… I am a child and if my dad made invest through me , less than 1.8 lacs it will be not taxable please answer on mail too.. i am in big trouble….and also what is the charge of converting minor to major in pancard..?

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