Income of the minor is clubbed with the income of the parent. In case the minor attains the age of 18 years during the year, say 31st August,2007 and interest on FD for the FY 07-08 is 36000 and a gift of Rs. 90000 is received by minor on 31.05.2007 and another for Rs 30000 on 01.01.2008 and both the donors are not relatives.
How the income will be computed?
In whose hands the above income will be taxed?
Who can claim the deduction of Rs 20000 invested in NSCs on 30.06.2007?
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Minor's Income
Replies (3)
1. Gift of Rs.90000 will be clubbed proportionately both in the hands of the parent and minor i.e.,in parent hand Rs.37500 and in minors hand Rs.52500 will be taxable.(5 months in parents hand and 7 months in minors hand).
2.Interest on FD of Rs.36000 is also seggregated same as above in point 1 i.e.,included Rs.15000 in parent hand and Rs.21000 in minor hand.
3.Gift of Rs.30000 received after attaining majority is clubbed in the hands of the major.But as the gift does not exceed Rs.50000 it will not be taxable in the hands of the major.
4.Rs.20000 invested in NSC - the same amount will be allowed as deduction proportionately both in the hands of the parent and major
the income will be clubbed in the hands of minor omly because at the any time during the p.y he becomes major hes perents are not liable for hes income tax ,wther he becomes major in aug,feb or march 31st
can you please quote where this is stated in the law..??
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