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Separate ITR of minor child

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This query is : Resolved

om kumar (Querist)

11 April 2011 I have taxable income of Rs.10 lacs approx per annum under salary, pgbp and other sources. Now my daughters bank interest income from bank fixed depositis is also clubbed in my taxable income which is approx Rs.100000.
Now i want to file separate ITR of my minor daughter so that i can save tax @30% on interest income of Rs.100000.

SHe is a good dancer and she receives prize money of approx Rs 2000 per annum on her dance performance from various dance competions in schools, clubs etc

So can i file her ITR separately showing income from PGBP (prize money) Rs.2000 amd IOS (bank interest Rs.100000.

In this manner can i save tax without doing any kind of tax evasion.

Arun Gupta

Arun Gupta (Expert)

11 April 2011 In my view ,clubbing provisions are applicable in your case ,u can not shifted the bank interest in her hands ,beacuse as per sec. 64 ,minor can earn her separte income from her extra efforts (dance in your case),but but intt. on FDR is taxable in your hands always as per sec.64

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