income from interest on money given to father

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 January 2011 i am an individual who has tuition income below 2.6lacs .ie i dont pay tax ........
i have given a chq of 7.5 lacs to my father in his name saving account ... nw if i take interst on the money is it taxable? should he cut tds ?what is the minimum rate of interest to be charged ?

Guest

Guest (Expert)

16 January 2011 Interest income to be earned from father will be taxable if yiou have taxable income.

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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16 January 2011 Interest on Saving bank A/c is taxable as income from other source , but no TDS should u/s 194A @ 10% !! ... NO minimum rate is specified

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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08 October 2021 You can take interest at 12%. No TDS would be deducted by father, provided his accounts are not audited in preceding year. Yes the interest received by you will be taxable.