-
Under the Income Tax Act, the annual income of every minor child up to Rs 1,500 is out of the tax net.
-
September 30 is the last date for filing income tax returns
There are many such provisions and rules while filing income tax return, which taxpayers are not aware of. CAs or professionals also include the same information in the return that you tell them. Many details like interest, income of minor children are neither shared by us nor filled in the return.
Savings: Up to Rs 1,500 off for one child
Balwant Jain, investment and tax advisor, points out that under the Income Tax Act, an annual income of up to Rs 1,500 per minor child is exempt from tax. The income above this is added to the parent’s income and becomes a liability as per the tax slab.
September 30 is the last date for filing income tax returns
This income of the children can also come from investing the amount gifted to them. Most of the taxpayers are unaware of this and do not disclose this income in their ITR form while filing returns. In this way, they unknowingly violate the tax law, for which they sometimes have to face notice.
Mutual Funds: On shifting to another scheme
It is well known that capital gains tax is levied on profits made from mutual funds. But if you shift the mutual fund to another scheme of the same fund house, the tax benefit or loss is calculated. Its details also have to be given in the ITR.
Actually, the information about such fund transfer is not in the bank statement, your CA or tax advisor will also not include this information in the form because he/she fills the return according to the bank statement.
In such a situation, it is necessary to provide the information of fund transfer to your CA. Remember that any transfer in mutual funds for profit or loss is calculated which should be filled in your ITR.
