Interest on nsc in the name of minor child

- If NSC is purchased in name of minor child in previous year & deduction is claim by parent u/s 80C

- If in current year minor child matured than interest on NSC will be included in the income of parent or child 

 

Replies (3)

as the form of minor child is signed by parent, so the payment would be received by parent only on behalf of child, 

its not important that parent/ child will account the maturity proceeds, as the receipt of NSC is tax free, ( its deducted from taxable income at the time of investment)

-If interest is included in parents income than it affect deduction under 80C

-If interest is incuded in child income who is major now, has NIL return han no need to file return

 

Than in whose income interest is to be included

Originally posted by : MOHIT GARG

-If interest is included in parents income than it affect deduction under 80C

-If interest is incuded in child income who is major now, has NIL return han no need to file return

 

Than in whose income interest is to be included

as all the income of minor child is governed by the legal guardian / parents, so the interest incomes also get clubbed in hands of parents.

after maturity, the instrument is transferred in hands of convedrted child, and afterwards the major child is liable for tax treatment, 

Here i have to point out that unless the instrument is transferred to the chjild after majority attain at post office, the same is likely to to be reflected in the accounts of parents.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
13 August 2026
Chartered Accountant (FP&A)

Client of Trellis Consulting

Gurgaon

CA

View Details
Company
09 September 2026
Semi Qualified CA / CA Inter - 2 Groups Cleared

Getmyca Consultant Pvt Ltd

New Delhi

CA Inter

View Details
Company
24 August 2026
Semi-Qualified CA/CA Finalist - Tax, GST, Audit & Accounts

Bharat Shah & Associates

Mumbai

CA Inter

View Details
Company
21 August 2026
Finance Manager

Resollect Technologies Pvt Ltd

Mumbai

CA

View Details
Company
ARTICLESHIP 29 August 2026
Article Assistant

RRPM & ASSOCIATES LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Article Assistant

SGNG & Associates

New Delhi

CA Inter

View Details
Company
04 September 2026
CA inter Or ca finalist

A Jaiswal and company

Lucknow

CA Final

View Details
Company
18 August 2026
Audit Assistant - Remote / Work From Home

CA ANOOP P K & ASSOCIATES

Kozhikode

CA Inter

View Details