Yes, any income that accrues or is paid to a minor is added to the parent's income under section 64(1A) and the parent will be taxed just like if it were their own income.
Any person under the age of 18 is considered a minor. Minors can earn an income from savings in a bank account, fixed deposits or other investments made in their name by the parents.
The minor's income does not get added to the parent's income if the minor's income is less than Rs. 1,500/-
The parent can claim an exemption of Rs.1,500/- for each minor child whose income is clubbed.
If both the mother and father are earning, the income of the minor is added to the income of that parent whose income is greater.
If the parents are divorced, the minor's income is added to the parent's income who has the custody of the child.
If both the parents are not alive, the income of the minor is not clubbed with the guardian, but instead a separate income tax return is filed.
There are some exceptions to this.
When a child earns an income by way of any work or from an activity for which he uses special talent or knowledge, the minor is required to file an income tax return. Like a Masterchef Junior winner would have to pay taxes of his own.
Income of a child suffering from any disability specified under Section 80U will not be clubbed with the income of the parent. A person is considered differently-abled when he is suffering from more than 40% of any of these - blindness, poor vision, hearing impairment, loco motor disability and mental illness.
Yes, a PAN card can be applied for a minor.