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minor income

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sandeep (Querist)
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23 July 2011 Dear sir,
My 7 years daughter has RD account (minor a/c.through father) of Rs.2000.00 per month in post office. Now it is matured & I received amount of Rs.145, 000.00 (120000+25000 interest) in my name. . I want to re-invest the full amount in NSC in my daughter’s name.

1. Can I take benefit of re investment of amount in NSC in my daughter'sname under 80 C?
Thanks,
Sandeep

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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23 July 2011 1. Rs 25000/ Interest has to be shown in your income in the year of receipt if interest earlier has not been shown on accrual basis on the RD. You can claim exemption U/s 10(32) of Rs 1500/.

2. For getting deduction U/s 80C you have to purchase the NSCs in your name only.
If you invest in daughter's name you will not get deduction U/s 80C.

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sandeep

sandeep (Querist)
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24 July 2011 Thanks Mr. Bafna.

Regards,
Sandeep

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