With holding tax from minor

[akbarkhan2]

Dear members,
Can we deduct with holding tax on a payment made to a minor, where in agreement his legal and lawful attorney is also nominated and , the agreement was signed by attorney, but the payment made to the minor. We duducted the tax from attorney. is it correct?

Thanks and Regards

[LapTop]

yes

[akbarkhan2]

Dear laptop , Thanks a lot. this forum is really doing a great job, for helping out people like me. especially you.

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by LapTop</i>
<br />yes
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

[awaisaftab]

If you are making a contract of providing of goods or rendering of services from attorney of a minor your contract of sale of goods/rendering of services is valid and fulfils requirements of valid contract under Contract Act, 1872. So you are liable to deduct WHT while making payment to attorney of a minor. In fact you are dealing with attorney not minor although the minor is ultimate beneficiary but your contract is with attorney. According to Contract Act, 1872 a minor cannot enter in a contract.

[LapTop]

ye bat to done hay k tax withheld ho ga,,,

par yahan ik sawal payda hota hay k tax deposit kis k naam say ho ga attorny ya minor k?

[awaisaftab]

WHT will be deposited in the name of attorney

[Greatkhans]

Hi Akbarkhan2,

Very briefly, answer to your question is "YES".

Income Tax Ordinance has nothing to do with any other law for the time being enforced in Pakistan. Same is the case with Contract Act. 1872. Income Tax Ordinance does not define the age of the "person as defined in ITO". No matter one is newly born or 100 years old, no matter how one drove the money, tax laws are equally applicable.

Attorney is a person who acts on behalf of another person. Tax Deposit Certificate/Challan will be issued in the name of the person whose name appears on the invoice or whom the payment has been made. It could be an individual or a corporate boy etc. In this case it should be the minor. Whereas this will be delivered to the Attorney.

Regards,

GREAT KHANS

[LapTop]

Awais Bhai,
Tax deposit usi k naam say ho ga jis ki Income hay,,,,

yani k minor k NTN pay,,,,,,,, kyon k Minor k naam say agar tax deposit challan nhi ho ga to wo income tax return submit karaty wakt withholding ka koi proof nahi day saky ga, or usy uski income par dobara say Income Tax dayna pary ga....

[awaisaftab]

Mere bhayee minor ki ke definition ITO main mojood ha 18 sal se kam umer larke ka to CNIC nhn hota NTN khan se ban jay ga aur return khan se file ho gee. Ager bache k man bap honge to ITO k mutabiq minor ki income us ki walda ya walid ki income,whichever's income is higher, main add hogi.

[LapTop]

Awais bhai mujhay pata tha aap ye sawal zaror karo gay,, may nay problem face ki hay,,, mera 1 client 14 sal ka bacha hay, or us ka may nay NTN bhi banwaya howa hay,,,, ap ko agar kisi minor ka NTN banwana ho to mujhay bataiye ga, may aap ko tarikakar bata don ga banwany ka,,,,,

[Greatkhans]

Hi Laptop,

You are very right. What Awais is referring is "clubbing of income" with parent. This is an entirely different issue. Still in this case the income and tax deducted will be in the name of minor, not his parents. We should not be grasshopper so stick to the main issue.

Regards,

Regards,