Finance Buddy

 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 FY 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. “Income tax rules state that individuals below the age of 18 years are considered minors and are taxed differently. Min...

 Budget 2023 has made the new tax regime attractive. The government expects two thirds of all taxpayers to opt for it. ET Wealth tells you how to make an informed decision. 1.Business income will mean additional compliances Tax laws consider trading in derivatives and commodities, freelance work, income from YouTube or any other content publishing platform, among others, as business income. So if you are a salaried taxpayer who also has a business income, you need to show that separately while filing ITR 3 or 4. If you want to switch to the new tax regime, a declaration to the effect has to be given in Form 10IE.  Even though Budget 2023 has made the new tax regime the default one, it is applicable from 1 April onwards. Therefore, the old tax regime is the default option for the current financial year. Sujit Bangar, Founder, Tax Buddy, says once taxpayers who have business income make the declaration in Form 10IE, it would be applicable for subsequent assessment years as well....