10 September 2020
I am a salaried tax payer, obtained form 16 too. 1, I have claimed the PPF amount upon the death of my wife in the month of march 2020. 2. I was given a demand draft and the same is encashed in my account, amount being 9 lakhs 45 thousand. 3. Immediately I have initiated two fixed deposits of 1 lakh and 8 lakh, in my sons name (Son aged 20 years), at his SBI account. Son is a student and has no income. He earns interest on the FD of the said amount.
Questions;- 1. Will the amount be taxable for me? if yes what is the tax payable, if no under what section should I claim exemption.
2. Will my son eligible for tax toward the said amount of the initiated FD? if yes what shall be the tax amount?
3. Will he have to file the ITR and what number is it ITR1. under which section should tax exemption be claimed for my son for his lifetime first ITR1? I am to prepare and file ITR1 on my own at the efiling site.
Please guide me regarding each query in detail.
Thank you, Mr. Shekhar Salunke email; shekharsalunke1@gmail.com
13 September 2020
1. As your son being a major, interest on FD wouldn't be included in your income.
2. The interest on FD would be taxable for your son and tax amount would be as per slab rate.
3. ITR-1 to be filed for your son, however your ITR may change depending if you have any other income and there is no such exception for first time ITR filer.
For any queries, you could contact at caankithjain@gmail.com.
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