Income tax on minor’s family pension

POSTED BY Muthuvel kumar Shunmugavel ON March 26, 2013 6:12 pm COMMENTS (2)

I am 33 yrs old. My wife expired and she was working in postal department. We had a son (5 yrs old now) and I am receiving a family pension for him as guardian. Also I am remarried and working in IT and has taxable income.

 

1. Do I need to file income tax along with my son’s pension income? Is pension income exemptible from tax calculation?

 

2. If I invest this pension income in my son’s name in RD, FD etc., should the interest gained be clubbed with my income while filing?

2 replies on this article “Income tax on minor’s family pension”

  1. Muthuvel kumar Shunmugavel says:
    March 29, 2013 at 6:04 pm

    Thanks for your response.

    Reply
  2. Ashal Jauhari says:
    March 26, 2013 at 7:20 pm

    Dear Muthuvel, although the income in the form of pension is accruing to your son but he being a minor, such pension income ‘ll be clubbed into your name & you w’d have to pay tax on it. if you invest the pension amount, the resultant income ‘ll also be taxable in your name.

    My take, please invest the pension amount only in such instruments, where the income is not taxable like PPF in your son’s name or Eq. MFs. this way you can not save tax outgo on pension clubbing but can certainly save tax outgo on the income generated from pension, if you invest in FDs or RDs.

    Thanks

    Ashal

    Reply

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