11 July 2011
Mr. X is having an income of Rs. 15 lakhs and his wife has income of Rs. 2.5 lakhs.
Wife had deposited Rs. 6 lakhs in the name of their 2 children out of her income in AY 06-07. The FD has matured in Ay 11-12 on which they received an interest of Rs. 1 lakh.
The children had no other income in the previous years and the marriage of parents subsists. Mr. X wants to tax the interest along with his wife's income.
Is there any provision/case laws allowing the minor's income to be taxed in the hands of parent with lower income??
CAclubindia
