Age is not an excuse when it comes to Income Tax Return (ITR) filing. Not many taxpayers are aware that children/minors are also required to pay taxes and file returns if they are making some income. But there are some conditions and exceptions. More than 4800 minors aged below 18 years filed their ITR in AY 2022-23 till 31st January 2023. This article looks at the ITR filing and taxation rules for children/minors aged below 18 years.
Tax experts say that young individuals with a source of income, including kid influencers, in India are expected to pay taxes on their earnings, just like any working individual.
“Minors who are below the age of 18 years and have an income in the form of earned income or unearned income or do certain transactions (subject to certain conditions) have to pay taxes,” says Abhishek Soni, Co-founder and CEO of Tax2win, a Fisdom company.