10 January 2011
There is minor child resident in India. Both the parents are non resident living abroad. The minor child has fixed deposit in foreign bank outiside India. The minor child files return of income offering such income earned outside India. His parents filed respective return declaring income earned in India. The A.O. refers to Sec 64(1A) and Sec 5 and decides to club the minor interest income earned outside india in the Total Income of Father. So Advice
10 January 2011
The AO cannot do this as they are non residents and this income will partake the character of income earned outside india which will not be taxable for non residents.
It can be assessed only in the hands of the minor.
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