Income of Infant and Minor

This query is : Resolved

Quick Summary

This discussion clarifies who is responsible for paying tax on interest income earned by an infant or minor child from sources like mutual funds or bank accounts. Generally, the child's income is 'clubbed' with the parent who has the higher income. If only one parent earns, the minor's income is added to their income. There are also options for a non-earning parent to file a return including the child's income.

SIDDHARTH MAHESHKUMAR SHAH

SIDDHARTH MAHESHKUMAR SHAH (Querist)
Follow

12 May 2025 Is the Interest Income, Income From Mutual Fund or Bank Interest (Saving Account and Fixed Deposits) earned in name of Infant Child and Minor Child is taxable to whom Father or Mother.
Please explain in detail.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

12 May 2025 If both the mother and father are earning, in this case, the child's income will be clubbed with the income of the parent whose income is greater.

SIDDHARTH MAHESHKUMAR SHAH

SIDDHARTH MAHESHKUMAR SHAH (Querist)
Follow

13 May 2025 If only Father is earning then minor's income to be mandatorily clubbed with Father's Income.
Or Mother (Who is not earning) can file return adding the income of Minor's.

Also please inform if any deduction is allowable

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