Taxation of trust of benefit of minor

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2012 Please help:

whether income of a trust settled for the benefit of minor is separately taxable or taxable in the hands of settler or in the hands of parents?

if trust received any fund other than settler then is it taxable or a capital receipt?

thanks in advance

CA SAMBHAV JAIN

CA SAMBHAV JAIN (Expert)
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12 June 2012 If it is solely for the benefit of the minor , the income will be clubbed with the parent maintaining the minor ( in case of a separation of the parents) , or in case of no separation in the Income of the parent whose income is more than the other.

Your second question seems to be a little unclear. Please rephrase it and post it again.

Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2012 sir

in present case grandfather has settled the trust for the benefit of minor and parents are trustee.

now income of trust is clubbed with parents or with settler?

minor has received some gifts (cash) which was transferred to above trust accounts. now what is the taxability of income generated from funds transferred to trust?