Tax implicationon the income for Assessment Year in which she attained minority

[Chhatra Jain]

One of my client's daughter attained the majority on 01/03/2020 and her taxable income is 3,24,000/- after availing benefits of chapter VI-A of Income Tax Act Now Question is -

1) whether ₹ 3,24,000/- would be Taxable income in her hands for the assessment year 2020-21

2) whether in view of she remained major for one month only during the previous year 2019 -2020 ( relating the assessment year 2020-21) her income would be ₹ 27,000/- and the remaining ₹ 2,97,000/- would be added to the income of parents having higher income for the precious year 2019 -20 on pro rata basis.

There are conflicting vies. Your valuable advice is solicited..

Regds,

Chhatra Jain

New Delhi

AI Summary

Daughter's Entire Income Post-Majority Date is Taxable Independently for Assessment Year 2020-21, Not Clubbed with Parents. A client's daughter attained majority on March 1, 2020, with a taxable income of 3,24,000 for the assessment year 2020-21 after utilizing Chapter VI-A benefits. The query is whether her entire income is taxable in her hands or if 27,000 is taxable in her hands and the remaining 2,97,000 should be added to her parents' income on a pro-rata basis since she was a minor for most of the previous year. The response suggests that since the date of majority falls within the financial year, her entire income should be calculated independently, not clubbed with her parents' income.