Clubbing of income

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This query is : Resolved

CA Rohit Tiwari (Querist)

26 April 2013 Dear sir pls tell me in whose hand the interest income earned on FDR in the name of wife and major child is taxable in the case where whole cash is gifted by husband to his wife and major child.

Preety Chawda

Preety Chawda (Expert)

26 April 2013 tHE Income on FDR transferred will be taxed in the hand of transferor. Here, husbad / father

CA Rohit Tiwari

CA Rohit Tiwari (Querist)

26 April 2013 Is this is applicable even where son is major???

shabbar

shabbar (Expert)

27 April 2013 no income of FDR for the major son will not club in the hand of father though amount was gifted from the father

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

09 June 2013 As per the provisions of Section 64 if husband gives gift exceeding 50,000/- to wife or vise verse then the person giving the gifts shall be charged in the hands of the person giving the gift. In case of minors if the minor receives any gift and the same is invested in FD till he is minor the interest income is taxed in the hands of either father or mother who ever's income is higher. Once the income is added in one hand till the minor attains the majority the income shall continue to be clubbed in his or her hands subject to deduction as allowable.

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