Vaibhav Suryavanshi’s huge earnings from IPL… So does the government collect tax on the income of minors?

Currently, young cricketer Vaibhav Suryavanshi has become a topic of discussion. The reason behind this discussion is his game and more than that the wealth he has earned. This cricketer Vaibhav Suryavanshi, who is only 15 years old, has built a property of approximately 7 crore rupees. Most of his wealth is generated from his success in cricket; This includes earnings from IPL, contracts with various leagues and income from brand advertisements. But since he is currently a minor, an important question arises: How does Income Tax apply to income earned at such a young age? What exactly is the law?

What is the exact rule of Income Tax?

As per Indian Income Tax laws, the taxation of income of minors is different from the usual procedure. In most cases, a minor’s income is not separately taxed; Instead, this income is included in the income of the individual’s parent, whose taxable income is higher. But there are certain exceptions to this rule.

How does income tax apply to minors?

As per Section 64(1A) of the Income Tax Act, any person below the age of 18 years is considered a ‘minor’. Income received by or accruing to a minor is generally included in the income of the parent whose taxable income is greater. According to the Income Tax Portal, such income is taxed in the hands of the parent; That is, this income is treated as if it were the parent’s own income.

When is a minor required to file ITR?

In particular, under these circumstances and under the Income Tax Act, the tax liability falls directly on the minor. This applies when the minor earns income from his own skill, talent, special knowledge or physical labor in areas such as content creation, acting, cricket, chess, singing or brand endorsement and when such income is not added to his parents’ income.

Pranav Sai S, tax expert, Cleartax, said, “This rule applies because the income is derived from the personal efforts and abilities of the minor and not from assets or funds transferred by the parents.”