Tds on interest earned on deposit in minor's name

TDS 2107 views 3 replies

MY CLIENT IS A MINOR. HIS FATHER HAS INVESTED A SUM OF RS. 5 LACS IN A COMPANY UNDER HIS GUARDIANSHIP. NOW THE COMPANY SAYS THEY NEED PAN OF THE MINOR AS THEY ARE SUPPOSED TO DEDUCT TAX OF THE PAYEE AND IN THIS CASE THE PAYEE IS MINOR. THEY ARE NOT ACCEPTING THE PAN OF THE GUARDIAN.

MY PROBLEM IS :

IF TDS IS DEDUCTED WITH THE PAN OF MINOR WHO AND HOW IT WILL BE CLAIMED SINCE THE MINOR DOES NOT HAVE ANY OTHER INCOME - HE CANNOT FILE HIS RETURN OF INCOME AND THE GUARDIAN CANNOT CLAIM CREDIT OF TDS DEDUCTED ON ANY OTHER PAN THAN HIS OWN.

COPY OF THE LETTER FROM THE COMPANY IS ATTACHED.

 

Replies (3)

The Company has to accept the PAN of the guardian. What reason are they giving for non-acceptance? Your letter is not attached.

Sunil

You need to explain the provisions of section 64(1) of IT Act 1961 to the bank relating to popularly called clubbing provisions.

The guardian can avail exemption for clubbing of minor's income of Rs 1500/-from his TI under section 10(32)

Please attach the letter or you can email the same to me at dipmaj @ rediffmail.com

Regards,

Agree with Deepjyothi the clubbing provision  under sec 64 would be attracted. Sec 199  regarding TDS credit  also needs to be explained.


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