23 July 2017
One of My client having salary income in the field of Engineering proficiency deposit cash of ₹12 Lang approx to her daughter account who is 8 year old... And after making deposit he make FD in her daughter name... now the point is How to bifurcate the Cash deposit so that in future no problem arise from department.Source of cash deposit Engineering income of the client
24 July 2017
Clubbing provisions will apply for the FD thus made from the cash deposits. So naturally the amount should be properly shown as revenue of the father and taxed accordingly.
Also note that interest from such FD will be clubbed to the father's income and assessable in his hands.
CAclubindia
