An orphan minor qualifies as an “individual” under the definition of “person” in Section 2(31) and such income should not be clubbed with any guardian’s income

The Delhi High Court, in an order dated May 29, 2025, has held that a minor—even an orphaned minor—is treated as an “individual” under the Income Tax Act, and therefore, their income is assessable separately in their own name.

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🧾 Key Holdings of the May 29, 2025 Order

1. Minor = Individual

The court explicitly clarified that orphaned minors cannot be denied the status of “individual” under the tax law. As such, their income—regardless of source—can be assessed independently and does not automatically get clubbed with a guardian’s income.

2. No Automatic Clubbing with Guardian

Contrary to common practice where minor’s income is often clubbed with that of the guardian, the court ruled that income earned by an orphan minor should not be automatically clubbed with guardians under the relevant provisions of the Income Tax Act.

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🚸 Legal and Practical Implications

• Separate Assessment: The income of an orphan minor must be assessed in the minor’s own name, based on their identity as an individual.
• Tax Liability: Tax liability cannot be shifted to guardians by default—each orphan minor is independently liable.
• Claims by Tax Authorities: The Revenue cannot contend that income must be aggregated with that of legal guardians for orphan minors.

This ruling strengthens the legal recognition and autonomy of minors in tax matters and aligns with broader protections—such as property rights safeguards—already pursued by Delhi courts for orphaned children.

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🧭 Contextual Background

• The case was heard and decided on May 29, 2025, and addresses appeals related to income assessments, particularly clarifying legal treatment of orphaned minors under the Income Tax Act.
• Separately, in earlier petitions (W.P.(C) 14361/2023 and 14393/2023), Delhi HC had directed the framing of guidelines—effective from April 9, 2024—to protect the property rights of orphaned children, including procedural safeguards and state responsibility for asset protection.

🧑‍⚖️ What the Court Held

• The High Court held that an orphan minor qualifies as an “individual” under the definition of “person” in Section 2(31) of the Income‑Tax Act, and accordingly income earned by an orphan minor is assessable separately in their own name. The court unequivocally rejected any contention that orphaned minors lack the legal status of individuals for tax purposes.
• It further clarified that such income should not be clubbed with any guardian’s income, affirming the minor’s independent tax identity.

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📋 Case Summary

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✅ Summary Table