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.
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.
CAclubindia
