Exclusive HOLI Discounts!
Get Courses and Combos at Upto 50% OFF!
Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

The Brite   18 November 2018

Tax on FD in the name of minor under Mutual settlement

Hi, We agreed on an alimony amount under the terms of mutual settlement mediated through a court appointed mediator which includes setting up an FD in the name of our minor child. I am trying to figure in whose hands will the interest earned be taxed. Is there a way the tax can be avoided so the child does not suffer? If not, what can I do to avoid the interest earned being taxed in my (father) hands. Regards


Learning

 3 Replies

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     18 November 2018

Income of the Minor also is taxable in his/her name.

KAUSHAL SHAH   30 December 2018

Hi, Brite if you are filling your income tax return then the fixed deposit which is in the name of your minor child and on which interest is earned by him can be clubbed with your income while filling the return. 2) In order to avoid the interest earned being taxed in your hands you have to submit form no.15G/15H to the authority concerned.

KAUSHAL SHAH   30 December 2018

Also submitting of PAN card is mandatory otherwise rate higher than the prescribed rate will be deducted.

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register