How to file ITR of a minor? | How to report the minor's income in ITR?

Income Tax ITR Filing
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1

My 16-year-old daughter has a bakery channel on YouTube. Recently, she has started receiving AdSense and making money from brand deals. Her total income includes:

  1. ₹ 4.3 Lac from AdSense and brand deals
  2. Savings interest of ₹503

Is this income taxable since she is below the age of 18 years?

2

If the child’s age was below 18 years at the beginning of the financial year then he will be considered as a minor for that year.

These days, many young people are making their own money at an early age. They are earning through side hustles and are also investing in the stock market.

Their sources of income can include:

  1. Interest income from the bank accounts

  2. Dividends or capital gains on stocks & mutual funds

  3. Income earned due to their skill, talent, or manual work

    e.g. As a singer, actor, dancer, athlete, influencer, etc

Now, let us understand how is a minor’s income taxed?

The tax implication of a minor’s income depends on how that income was earned.

  • If the income was earned from investments made by their parents from gifts received, it will be clubbed with the income of the parent whose total income is higher. Also, the parent can claim an exemption of ₹1500 per child u/s 10(34), maximum for 2 children.
  • If the minor has earned income through their skill, talent, or manual work, then it will be taxed in their hands separately, just like any other adult.

:bulb:In case the minor has more than 40% disability due to diseases like locomotor disability, hearing impairment, poor vision, mental illness, blindness, etc., then he falls u/s 80U and his ITR will be filed separately.

Now, how to report this income in the ITR?

  1. In case of clubbing of income with the parent/guardian:

    • First, list all the income that needs to be clubbed

    • Add these sources of income in their respective categories like capital gains, other sources, etc.

    • You also have to disclose it in the schedule SPI (Special person income).

    • It will be taxed as per the applicable tax rates to the parent.

      Remember, you need to add it in the ITR of the parent who earns higher total income.

  2. In case you need to report in the minor’s ITR separately: A minor cannot file and verify their own ITR. For reporting a minor’s income separately, a representative assessee shall file the ITR on their behalf. For this you need to,

    • Log in to the Income Tax e-Filing portal using your PAN credentials.
    • Go to Authorised Partners > Register as Representative from the dashboard.
    • Select the type of assessee you want to represent —Minor
    • Choose your relationship type and enter the minor’s PAN and other details.
    • Upload supporting documents (like the minor’s PAN card, birth certificate, or court order).
    • Review the information and submit the registration request.
    • Once the request is approved by the Income Tax Department, you’ll be able to file on the minor’s behalf.

    After this, your profile can be switched to the minor’s profile from your login itself.

    In your case, you need to request to be your daughter’s representative on the income tax portal and file her ITR separately since she is earning through her skills.

    Also, the total income of your daughter will not be taxable as it is within the threshold limit mentioned in the provisions of rebate u/s 87A.

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To file a minor’s ITR, the guardian or parent must file on their behalf using their PAN. Include the minor’s income details under “Income of Other Dependents” or as per income source. Report all income earned by the minor accurately to comply with tax laws and avoid penalties.

4

To file a minor’s income tax return, club their earnings with the higher-earning parent’s income. Declare it under appropriate income heads and mention clubbing provisions while filing the ITR form.