December 15, 2013 12:12 am
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
There are fixed deposits in the bank for a minor.how can we save TDS
can parents submit there PAN in minor’s and self bank account
Submit as in ?
How TDS can save on MINOR’s FIXED DEPOSIT
Dear Anshul, PAN is meant to track financial transactions be it for a minor or a major or even an artificial judicial person.
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
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…
Dear Anshul, even the shared link echoes the same thing. Issue is not settled yet.
I found this article through google –
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.
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 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 ?
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.
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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