RECURRING DEPOSIT

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student (Querist)
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26 July 2008 IF I(GRANDMOTHER) HAVE DEPOSITED FOR MY GRANDSON MONTHLY RS 1000 FOR 5 YEARS IN POST OFFICE RECURRING DEPOSIT .NOW AT MATURITY I GOT CHEQUE IN HIS NAME SINCE HE BECOMES MAJOR NOW WHETHER "INT ON RD" ON MATURIY WILL BE TAXED IN HIS HANDS?
IF YES WHETHER I HAVE TO EXECUTE SOME DEED FOR THIS ?
WHETHER HE CAN UTILISE THIS MONEY FOR ANY PURPOSE OR BY UTILISING THIS AMT SOME OTHER HAVE EFFECT?

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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26 July 2008 The amount deposited in cash in the RD a/c of the grandson on monthly basis is a gift to the grandson and as such the deposit belongs to the Grandson and the interest accrued thereon shall be the income of grandson.

student

student (Querist)
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26 July 2008 whether any kind of deed reqd be executed for this ?
whether amt can be used by grandson for any purpose or it will affect clubbing provision?

student

student (Querist)
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27 July 2008 whether any kind of deed reqd be executed for this ?
whether amt can be used by grandson for any purpose or it will affect clubbing provision

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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28 July 2008 No, deed is not mandatory. Also, the clubbing will not be done.

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