Partner With Us NRI

Open Free Demat Account Online with ICICIDIRECT

How To File Your Child's First Income Tax

Here are the steps you need to follow to file your child's first income tax. 

To file your child's income tax return, you need to first identify your child's income. This may be earned or unearned income. Earned income may be one where your child makes money through advertisements, contests, YouTube channel or any brand partnerships. While, unearned income is via gifts from parents, grandparents or any form of money received from family members. 

You could file your child's income tax return either independently or club the income of either parent, who has a higher income. 

To proceed to file your child's income tax return, below are the mandated documents that will be required: 

  • Pan card of the child.
  • Income details of the child. Income received from what sources are cash, cheques, deposits in a bank account. 
  • Investment details include fixed deposits, mutual funds, savings account interest and any other type of investment saving schemes. 
  • Active mobile number and email id.
  • Income tax e-filing portal login details. 
  • Child's bank account details include name, IFSC code, account number and any other required details. 

Steps to File your Childs Income Tax Return: 

  1. Log in to the e- filing portal of income tax. 
  2. Calculate your child's income for the assessment year and financial year you are filing the return for. 
  3. Download the right ITR form for your child's income tax return. 
  4. Fill in all your income details as per the exemptions, deductions, rebates and other required information. 
  5. Validate the form with all your information. Do remember to check the details and information before you proceed to validate. 
  6. Convert the form to XML format to keep it prepared to upload on the income tax e- filing portal.
  7. Log in to the e- filing portal , select the e-file tab and select the income tax return option. Input the necessary details such as Pan, Assessment Year-, ITR form number and the submission mode. Upload your XML file and select submit. 
  8. Verify your child's income tax return submission through the Aadhar OTP or electronic verification code.

Depending on the income earned by the child, the income can be clubbed with either parent. This decision finally rests on the parent's income and the decision to file the child's income tax return independently. Income earned via a means of working will have to be independently filed under the child's name. 

Pointers to keep in mind when filing your child’s income tax return:  

  • The advantage of clubbing the child's income is for the assessee that is either parent in whose income the amount of the minor child is clubbed.
  • Income from a child's fixed deposits should be clubbed with the parents whose income is higher. 
  • The minor's income is not added to the parent's income if the minor's income is less than Rs. 1,500.

Disability of child: 

The income of a disabled child under the category of Section 80U of the Act will be filed independently under the child's name.

Manual work: 

If the child earns an income through work, not in the actual term of manual work, the income will be filed on an independent basis.

Unique expertise and or skills: 

any particular skill, talent, or knowledge generated by income will be reported under the child's independent income tax return.

Child above 18 years: 

once the child crosses 18 years, the child will no longer be a minor and will turn into a major. In this case, by default, the income earned by work or by investments or by gift is to be declared and calculated for income tax purposes. 

Disclaimer :ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai - 400020, India, Tel No : 022 - 2288 2460, 022 - 2288 2470. Please note, filing of tax related services are not Exchange traded products and I-Sec is acting as a distributor to solicit these products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. The content is solely for informational and educational purpose. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon.

Most Popular

  • 13 May 2022
  • ICICI Securities

The Five-Point Financial Planning Checklist For Your Family

Whether you just got married or planning to have a baby or have dependents, you should have financial plans for every stage in your life to ensure a secured future for your family members. Here are five things you can do financially for your family.   

  • 12 May 2022
  • ICICI Securities

What is a Zero Coupon Bond?

You get fixed returns in the form of interest until maturity when you invest in a bond. Zero-coupon bonds work a little differently. In this article, find out what zero-coupon bonds are, their advantages and whether you should invest in them. 

  • 12 May 2022
  • ICICI Securities

What are Cross Currency Pairs?

The forex market is the largest financial market globally. Currency trading is a lucrative and booming business. While most currencies trading happens in relation to the US Dollar, some don’t. That forms the basis of cross currency pairs. Here’s what you need to know about it. 

  • 12 May 2022
  • ICICI Securities

Investing principles from Benjamin Graham: The Father of Value Investing

Benjamin Graham was a British born economist, professor, and investor who taught at Columbia University. He was also a mentor to some of the most famous investors of the 20th century, including Irving Khan, John Templeton, & Warren Buffett. Buffett called him "the second most influential figure in his life, only after my father". 

  • 12 May 2022
  • ICICI Securities

How to Invest in Nifty 50?

The Nifty 50 is the benchmark index of the National Stock Exchange. It represents the 50 largest companies listed in India. Investing in the Nifty 50 can be a good idea for those looking to make index-linked returns. Here’s how you can invest in the index. 

  • 12 May 2022
  • ICICI Securities

Investment philosophy of Cathie Wood: The most powerful woman on Wall Street

Catherine Duddy Wood, also called Cathie Wood, is an investor who primarily invests in disruptive technologies and is the founder, chief executive officer, and chief investment officer of ARK Investment Management, LLC, an investment management firm mostly active in the United States.

  • 11 May 2022
  • ICICI Securities

How to Use Technology to Improve Your Finances

Technology has made life simpler for everyone. In the realm of personal finance, technology has streamlined many processes—from budgeting to automating your payments. On National Technology Day, let’s look at how technology has transformed our finances. 

  • 11 May 2022
  • ICICI Securities

How to Invest in your Every Goal with Mutual Funds?

Each of us is unique. We have different needs and goals in life. Some of us can ride along swinging markets, while some may need a relatively conservative investment tool. 

  • 11 May 2022
  • ICICI Securities

Four Reasons Why Entrepreneurs should Invest in Equity Mutual Funds

Equity mutual funds provide growth opportunities not just for individual investors but also for entrepreneurs and corporates. They make excellent investments for anyone looking for wealth creation. This article will give you four reasons why businesspeople should consider investing in equity mutual funds.