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)

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Category : Income Tax (28252)
Type : News (13919)
Tags : ICAI (2711)

One response to “Increase Minor Income Exemption Limit to Rs. 10000 – ICAI”

  1. sathish reddy says:

    No restriction in no:of children at present

  2. Adv Jignesh P. Shah says:

    Even Rs.10,000/- per Child is VERY LESS in Cities like Mumbai !
    So, Rs.20,000/- per Child will be Reasonable ( Total Rs. 40,000/- for Two Children )!
    Or else, in Metropolitan Cities, Rs. 20,000/- per Child & Other places, Rs. 10,000/- per Child !

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