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Minor income

Eshwar V (Asst Prof of Commerce) (54 Points)

02 February 2016

Dear Sir/Madam

One minor (Aged 16 years) kept a fixed deposit and the interest has exceeded Rs 10,000 and hence TDS has been deducted. Now for filing, is it required to club this minor income with the income of that minor's parent?

Minor is a student and has no other sources of income or earning

Please help me

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5 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 02 February 2016

yes it would get clubbed to either of parent who has higher income

1 Like

Shivani Mittal (Practice) (425 Points)
Replied 02 February 2016

Yes, it will be clubbed as mentioed by Mr. Sharma. Further, parent in whose income it is being clubbed can cliam a deduction of Rs. 1,500/- u/s 10(32).

Regards

CA Shivani Mittal

1 Like

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 06 February 2016

Agree with Sharma & Shimi

Yes it will be clubbed either of parent who has higher income......if tds certificate issued in Minor's name then you can't claim credit of such TDS.

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Vishal Goel (Chartered Accountant) (1688 Points)
Replied 06 February 2016

For claiming credit of TDS

As per Rule 37BA, Clause 2(i), Where under any provisions of the Act, the whole or any part of the income on which tax has been deducted at source is assessable in the hands of a person other than the deductee, credit for the whole or any part of the tax deducted at source, as the case may be, shall be given to the other person and not to the deductee. Provided that the deductee files a declaration with the deductor and the deductor reports the tax deduction in the name of the other person in the information relating to deduction of tax.

1 Like