Employee
350 Points
Joined December 2008
MINOR WELFARE TRUST
Mr. A is the Uncle of Minor S. Mr. A creates a Minor Welfare Trust by settling Rs. 22,00,000/- as Corpus Fund for Minor S Welfare Trust. Minor S is the beneficiary of the Welfare Trust and the minor will have the right on the settled property and their accruals only on his attaining majority, till then the corpus would be managed by the trustees mentioned in the trust deed.
In order to avoid clubbing provisions u/s. 64 (1A) (on Rs. 22,00,000/- deposited in a bank by the trust), is it enough to file the return of income by the trust signed by the trustee or a return of income has to be filed in the name of the minor and paying taxes on the interest income of Rs. 2,20,000/- the minor has no other income other than above interest income.
Can anyone guide me on the above subject.