Tds
This query is : Resolved
16 April 2012
SIR, FIXED DEPOSIT OF RS. 2.00 LAKH @ 10 % IN THE NAME OF MINOR AND GUARDIAN. GUARDIAN HAVING VALID PAN AND SUBMITTED FORM 15G FOR NON TDS.PLEASE ADVICE. CAN WE CONSIDER AS NON TDS OR TO DEDUCT TDS.
17 April 2012
you have to go to TDS deduction till you have minor's PAN Card.
04 May 2012
Dear O.D. Sharma
Can you explain the reason for your answer please.
Regards!
Ritu
Can you explain the reason for your answer please.
Regards!
Ritu
27 July 2025
Here’s the clear view on your query about TDS on Fixed Deposit interest in the name of a minor with guardian submitting Form 15G:
---
### Situation:
* FD of ₹2,00,000 at 10% interest in the name of a minor.
* Guardian has valid PAN.
* Guardian submitted **Form 15G** to declare that total income is below taxable limit and request non-deduction of TDS.
---
### What does the law say?
1. **TDS on FD interest paid to a minor**:
* The income of a minor is clubbed with income of the parent or guardian, as per Section 64(1A).
* So, even if the FD is in minor's name, income is taxed in the hands of parent/guardian.
2. **Form 15G applicability**:
* Form 15G can be submitted to avoid TDS **only if total income of the person (guardian here) is below taxable limit**.
* The guardian must be the owner of the income or eligible to submit Form 15G.
3. **In case of minor's FD**:
* Since income is clubbed with guardian's income, guardian can submit Form 15G.
* If Form 15G is valid and conditions met, **TDS is not deductible**.
---
### Conclusion:
* **You can accept the valid Form 15G submitted by the guardian and not deduct TDS on interest paid on FD in minor’s name.**
* Ensure Form 15G is correctly filled and guardian’s total income is below taxable limit.
* Keep proper records to justify non-deduction in case of scrutiny.
---
If guardian’s total income exceeds exemption limit, TDS **should be deducted** as per applicable rates.
---
Need help with Form 15G format or more details?
---
### Situation:
* FD of ₹2,00,000 at 10% interest in the name of a minor.
* Guardian has valid PAN.
* Guardian submitted **Form 15G** to declare that total income is below taxable limit and request non-deduction of TDS.
---
### What does the law say?
1. **TDS on FD interest paid to a minor**:
* The income of a minor is clubbed with income of the parent or guardian, as per Section 64(1A).
* So, even if the FD is in minor's name, income is taxed in the hands of parent/guardian.
2. **Form 15G applicability**:
* Form 15G can be submitted to avoid TDS **only if total income of the person (guardian here) is below taxable limit**.
* The guardian must be the owner of the income or eligible to submit Form 15G.
3. **In case of minor's FD**:
* Since income is clubbed with guardian's income, guardian can submit Form 15G.
* If Form 15G is valid and conditions met, **TDS is not deductible**.
---
### Conclusion:
* **You can accept the valid Form 15G submitted by the guardian and not deduct TDS on interest paid on FD in minor’s name.**
* Ensure Form 15G is correctly filled and guardian’s total income is below taxable limit.
* Keep proper records to justify non-deduction in case of scrutiny.
---
If guardian’s total income exceeds exemption limit, TDS **should be deducted** as per applicable rates.
---
Need help with Form 15G format or more details?
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