If the person age below 18 is considered as minor and he/she is not eligible to submit the income tax under the Indian Income tax act except certain exceptional cases. If a minor is earning income, then it will be clubbed with his guardian or parents income and will be paid tax for the amount.
Normally, the income of any minor is clubbed in the hands of either of his parents and, therefore, the minor need not file the return and hence PAN is not required. There are some exceptions.
All the income of a physically or mentally handicapped minor child will be directly assessed in the hands of the child. Similarly, a minor earning income by way of manual work or an activity involving application of his skill, talent or specialized knowledge and experience, is directly assessed in the hands of the child.
Section 64(1A), which provides for clubbing of the income of a minor child with that of the parent, provides that where the marriage of the parents subsists, the income of the minor child is to be clubbed in the hands of the parent whose total income is higher and further that once the income of a minor child is clubbed in the hands of one parent, the same is to be continued to be clubbed in the hands of that parent unless the assessing officer after giving an opportunity of being heard to the other parent is satisfied that the income needs to be clubbed in the hands of that other parent.
Besides clubbing of income of minor-children in the hands of the parent, certain other incomes are also liable to be clubbed in the hands of the individual in the following circumstances:-
a) When the income arises to the spouse of such individual from assets transferred directly or indirectly to the spouse by the individual for inadequate consideration.
b) When the income arises to the son's wife from assets, transferred after 1st June 1973, to the son's wife by the individual for inadequate consideration.
c) When income arises to the son's wife from assets transferred, for inadequate consideration, by the individual to such person for the benefit of the individual's wife or son's wife.
The exemption limit is Rs.1500 per child in a year.