Clubbing of Minor's Income

Save Share

This query is : Resolved

Meena George (Querist)

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)

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)

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)

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,

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now