In case of income arising out of property by way of a will or by way of a settlement in favour of minor by the paternal grandfather (with the mother as guardian), would the income be taxed in the hands of
a) minor with the mother being guardian
b) of the mother
c) in the hands of the father
Minor is not earning with his own talent, the Income is clubbed with the parents whose income is greater or Guardian
Mr. Purushottam is correct.
IT WILL BE TAXABLE IN THE HANDS OF THE EITHER OF THE PARENT HAVING GREATER INCOME. hOWEVER IF A NON DISCRETIONARY [ WHERE SHARE OF THE BENEFICIARY IS DEFINED] PRIVATE TRUST IS CREATED AND IT IS SPECIFICALLY MENTIONED THAT THE INCOME WILL BE ACCESSABLE TO THE MINOR ONLY WHEN THEY ATTAIN MAJORITY. THEN CLUBBING PROVISION U/S 64 IA WILL NOT BE APPLICABLE.
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