Clubbing of Minor's Income

This query is : Resolved

Meena George (Querist)
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11 July 2011 Mr. X is having an income of Rs. 15 lakhs and his wife has income of Rs. 2.5 lakhs.

Wife had deposited Rs. 6 lakhs in the name of their 2 children out of her income in AY 06-07. The FD has matured in Ay 11-12 on which they received an interest of Rs. 1 lakh.

The children had no other income in the previous years and the marriage of parents subsists. Mr. X wants to tax the interest along with his wife's income.

Is there any provision/case laws allowing the minor's income to be taxed in the hands of parent with lower income??

Ravikant

Ravikant (Expert)
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11 July 2011 There is no provision and case laws to allow minor's income to be taxed in the hands of parent with lower income

Meena George

Meena George (Querist)
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12 July 2011 Please advise if there is any option to club the minor's income with income of parent with lower income??

Ravikant

Ravikant (Expert)
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12 July 2011 Mr. X wants to tax the interest along with his wife's income

Mr.X can take the above risk and club the interest with wife's income,he has 90% chance of not receiving any notice and will get away easily,

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