Who is liable to pay the tax on the income from FD Interest of a minor account?
Vineet Maheshwari (Manager) 28 January 2010
Who is liable to pay the tax on the income from FD Interest of a minor account?
A V Vishal (Advocate) 28 January 2010
In excess of Rs. 1,500 earned by a minor, the income is added to the parent with higher income, irrespective of the residential status of either the child or the parent. The clubbing provision is applicable even if the parents are NRI and the minor stays in India or vice-versa.
Non-clubbing of Minor's Income
Clubbing provision is not applicable in the following cases:
Exception: Income up on such incomes are clubbed with parents, like interest received from bank if the money is deposited.