Consider a case of minor child and clubbing of income:
Mother opens a Savings account for herself with her own PAN. Minor child has no PAN of its own. Then, Mother opens a minor Savimgs account for her minor child by providing her own PAN(mother PAN).
The bank writes the name of minor child on child's account on all its communication records as :
"NAME OF CHILD U/G NAME OF MOTHER"
Mother's savings account and RD/FD generate interest and TDS. Minor child's Savings account and FD/RD also generates interest and is reported under mother's PAN.
Father's total income in the financial year is more than that of Mother.
Then, Whose income should the minor child's interest income get added and how? Should we add to Father's income or Mother's income? And how to migrate the TDS entries of child's account from Mother's 26AS to Father's 26AS?
Its Bit complex, but I tried my best to explain my query.
CAclubindia
