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IT Prob

Ketan Kapoor (Audit) (124 Points)

11 July 2011

Q.There was a 9 years old child who received a prize of Rs. 300000 out of his skill and competence,but TDS was deducted.Thus in order to awail refund his parents filled his Income Tax return last year.Now that amount was invested in FD and this year he has received intt on that.will this intt be clubbbed in his parents income?
Q.In the above mentioned ques TDS has been deducted on the intt on FDRs and Form 16A DEPICTS THE pan no. of minor.will there be any problem in taking credit of that intt by his parents?

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Ketan Kapoor (Audit) (124 Points)
Replied 11 July 2011

Originally posted by : Ketan Kapoor
	Q.There was a 9 years old child who received a prize of300000 out of his skill and competence,but TDS was deducted.Thus in order to awail refund his parents filled his Income Tax return last year.Now that amount was invested in FD and this year he has received intt on that.will this intt be clubbbed in his parents income? Q.In the above mentioned ques TDS has been deducted on the intt on FDRs and Form 16A DEPICTS THE pan no. of minor.will there be any problem in taking credit of that intt by his parents?

Sharad Saini (Student) (286 Points)
Replied 11 July 2011

Income earned by minor is to be clubbed in the hands of parents however if minor earns income out of his skills then no clubbing is required to be done.

Interest on FD is not earned by the minor out of his skills so it shall be clubbed.

If income is to be clubbed then TDS credit will also be available to the parents on the basis of that form 16A.

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