By Admin 
Vaibhav Suryavanshi: These days young cricketer Vaibhav Suryavanshi is in the news. The reason he is in the news is because of his wealth. At the age of just 15, rising cricket star Vaibhav Suryavanshi has accumulated wealth worth approximately Rs 7 crore. Most of his wealth has come from his success in cricket, including IPL earnings, league contracts and brand endorsement deals. Although he is still a minor, an important question arises, how is income tax applicable on earning at a young age?
The method of taxing minors under Indian income tax laws is different from the developed one. In most cases, the age of the minor is not taxed separately, but is added to the income of the parent whose taxable income is higher. However, some important matters are involved.
How does income tax work for minors?
According to Section 64(1A) of the Income Tax Act, any person below the age of 18 years is considered a minor. Income received or paid to a minor is usually added to the income of the parent whose taxable income is higher. According to the Income Tax portal, that income is taxed in the hands of the parents as if it were their own income.
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When does a minor have to file ITR?
Especially in this situation, according to the Income Tax Act, tax is levied directly in the hands of that minor. When income is earned by a minor through his skill, talent, special knowledge or manual labor such as content creation, acting, cricket, chess, singing or brand endorsement, and it is not combined with the income of his parents.
“This rule applies because the income arises from the minor’s personal efforts and ability and not from property or money transferred by the parents,” said Pranav Sai S, tax expert at ClearTax.
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