Tax for income earn in Minor account.

POSTED BY Amit ON June 4, 2012 1:00 pm COMMENTS (3)

I have opened Saving Account on my minor son’s name & I m joint holder for that account. I have 1 Fix Deposit in that account. Do I have to pay tax for the interest earned on FD?

3 replies on this article “Tax for income earn in Minor account.”

  1. BanyanFA says:

    Amit
    Ashal answered it all. This is based upon the clubbing rules of Income Tax act whereby the income of minor is to be clubbed in the income of Parent.

  2. Amit says:

    Thanks Ashal…

  3. Dear Amit, if the yly interest is 1500 Rs. or less from that FD + SB account, the same ‘ll be tax free for you. In case the combined interest is more than 1500 Rs. yly figure, the same ‘ll be added into your income & ‘ll be taxed as per your slab rate.

    Thanks

    Ashal

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