Dear Madam/Sir,
My child is 100% disabled. I had been claiming deduction under section 80 DD to the extent of Rs 100000/-. There are also some FDs in the name of my disabled child under my guardianship. The TDS is deducted against my PAN number. I was not aware that the income of minor, disable child is not clubbed with the parent’s income. So I has been clubbing this income and paying tax. This year I realized that there is an exemption available where in the income of the minor, disabled child need not be clubbed with parent’s income. My questions are as below:
1) Since bank has already deducted the TDS for the FDs in my child’s name against my PAN, it is reflecting in my form 26AS. Now if I don’t add the child’s income to my income then there will be a mismatch. How to go about it?
2) The child’s FD interest income is Rs. 178238/- Do we need to file the IT return in child’s name if I don’t add this income to my income?
3) If child’s IT return is filed separately, then will I be eligible for deduction under section 80DD? Or the child will now have to claim deduction under section 80U.
Please help us with our above queries. It will be very helpful.
Best Regards,
Anand
CAclubindia
