tax on Post office recurring deposit maturity

This query is : Resolved

khyati (Querist)
Follow

12 November 2009 Post office recurring deposit maturity amount (gross + int)is taxable ??

If post office RD account is on the name of Minor and maturity chq is deposited in parent's account. It will be treated as whose income?? minors or parents ??

chetan soni

chetan soni (Expert)
Follow

12 November 2009 Tax will be payable only on interest portion & not on gross portion.

Also note minors income will be clubbed in the hands of parents who's individual income is higher. He can also take the exemption of Rs. 1500 per child restricted to 2 children's u/s 10.