Computation of Total Income

This query is : Resolved

nitin (Querist)
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23 May 2011 An assessee has its two minor child of which:
Minor Child 1 has a short term capital gain of Rs. 418, Long term CApital Gain(without indexation gain: Rs. 10,000; wid indexation loss: 30,000)
bank interest : Rs.1574, SBI bond interest : Rs. 2700.

How this income of minor child would be added in the assessee's income????
if assessee has its own short term capital loss of Rs. 30,000

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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24 May 2011 1. The Income of minor child will be added in the respective heads in the computation of father's income as if the said income belongs to father only.

Short Term Capital Gains :

Minor 418
Father - 30000
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-29582
Long Term Capital Gains :
Minor -30000
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Income from Other Sources :
Interest 4274

In respect to this minor child 1, Deduction U/s 10(32) of Rs 1500/ would not be available.

In respect of another child, deduction can be claimed to the extent of Rs 1500 or minor's income which ever is less.