22 July 2017
MY CLIENT WHO WAS ARMY PERSONNEL MET WITH AN ACCIDENT AND LEFT BEHIND 2 MINOR CHILDREN AND WIFE. COURT ISSUED COMPENSATION AND ARMY ALSO PROVIDE FUNDS. ARMY FIXED SOME AMOUNT BY WAY OF FDR ON THE NAME OF MINOR CHILDREN. FOR THESE FD'S BANK ENTERED MINOR CHILDREN PAN SEPARATELY AND DEDUCT TDS ON SAME. NOW MY QUESTION IS WHETHER THE INTEREST INCOME WILL BE CLUBBED IN INCOME OF MOTHER OR NOT ? IF YES, THEN HOW MOTHER WILL GET TDS CREDIT WHICH IS DEDUCTED ON MINOR PAN ? IF NO, THEN HOW TO FILE MINOR ITR & CLAIM TDS ?
23 July 2017
Said mother has to submit her PAN to the BANK , ( even though there may be PAN issued to minor child) , It is mandatory for the bank to make a TDS in the name of mother as PARENT of the Child , the same will be reflected in 16A / 26 AS of the mother ( it is common now,
For knowledge of this CA club, issue of TDS in case of CHILD having both parents ( Father and Mother), Parent should analyze, among-est themselves who is having more income among est them, and inform the bank accordingly to deduct TDS for FD's of the Child SHOULD be in the name of a PARENT (either Father or Mother) necessarily to deduct TDS in the name of the one -WHO IS HAVING HIGHER INCOME ( some times mother earns more than father)
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