How to file it returns for funds of other source

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2017 One of my friend received 16 lakhs as compensation from a company which cause damage to his house so they filed a case .But the other party came out for a out of the court settlement by paying 16 laksh as compensation to my friend but the dd is given in the name of his kids who are minors.Now my friend opened bank account in the kids name, he becoming the gaurdian and deposited the money in FD.Now the question is my friends income is non taxable it is around 1 lakh 40 thousand yearly. Now he wants to know how to file income tax returns so that he cannot be taxed as his income is non taxable and amount kept on his kids name.He needs guidance on how to file it returns, manually or online so that it is shown as non taxable.FD gives cumulative interest.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 January 2017 Compensation received is a capital receipt not taxable. But the interest earned on the compensation amount is taxable in the hands of father, as per clubbing provisions of income tax.

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