Tax credit of minor's income

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Deval (Querist)
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12 July 2012 Hi,

I want to know about clubing the minor's income with the parent's income.If minor's PAN number given & tax deducted thereon , how can parent can claim the same while clubing the same.
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Pratik Vora

Pratik Vora (Expert)
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13 July 2012 You have to give delcaration to deductor of income that he has to mention parent's name in filing TDS return for the reason that income of minor is clubbed in parent'sincome. Therefore, the said tds wil b e reflected in PARENT'S form 26AS and HE/SHE WILL BE ABLE TO TAKE CREDIT FOR THE SAME.

Relevant extracts of rule 37BA of IT Rules, 1962 is reproduced below.

Credit for tax deducted at source for the purposes of section 199

37BA(1)....

2) [(i) Where under any provisions of the Act, the whole or any part of the income on which tax has been deducted at source is assessable in the hands of a person other than the deductee, credit for the whole or any part of the tax deducted at source, as the case may be, shall be given to the other person and not to the deductee :

Provided that the deductee files a declaration with the deductor and the deductor reports the tax deduction in the name of the other person in the information relating to deduction of tax referred to in sub-rule (1).]

(ii) The declaration filed by the deductee under clause (i) shall contain the name, address, permanent account number of the person to whom credit is to be given, payment or credit in relation to which credit is to be given and reasons for giving credit to such person.

(iii) The deductor shall issue the certificate for deduction of tax at source in the name of the person in whose name credit is shown in the information relating to deduction of tax referred to in sub-rule (1) and shall keep the declaration in his safe custody