Increase Minor Income Exemption Limit to Rs. 10000 – ICAI

Income of minors – to increase exemption limits under section 10(32)

Issue/Justification

At present income of minors included in the hands of parents is exempt to the extent of Rs.1,500/- for each minor. The average expenditure to meet cost of a minor’s education/health/living expenses which has gone up considerably in recent years, limit of Rs.1,500/- fixed is woefully inadequate.

Suggestion

It is suggested that this should be raised to at least Rs.10,000/- for each minor child.

(SUGGESTIONS FOR RATIONALIZATION OF THE PROVISIONS OF DIRECT TAX LAWS)

Source-  ICAI Pre-Budget Memorandum–2018 (Direct Taxes and International Tax)