Suppose Mr X gifts 1lac to his daughter who is a major. If the money is invested in a FD will the interest income be clubbed in the hands of Mr X?
Does it make any difference if the daughter is a minor??
ACCOUNTANT
(Student)
(559 Points)
Replied 31 October 2011
No income to a major daughter will not be clubbed with that of the assesse.........
When comes to a minor.......
Income to a minor under the guardiance of the assesse will be clubbed......
It would not be in the case of a Minor Married Daughter.....
Vishal P Kamath
(Articled Assistant)
(44 Points)
Replied 31 October 2011
Also wanted to know whether in case of minors, Exemption of Rs.1,500/- can be claimed on such clubbed income.
Kunal
(Risk Analyst)
(299 Points)
Replied 31 October 2011
Devendra
(Chartered Accountant)
(4775 Points)
Replied 31 October 2011
In the case of Clubbing of Income of a Minor, exemption upto Rs. 1500 can be claimed u/s 10(32) of the Income Tax Act, 1961.
Regards,
Devendra K
devang
(CA FINAL article )
(181 Points)
Replied 31 October 2011
income on income cannot club as per case law. i don't remeber case law but this in decided in case law.
if such person is minor then it is club with whose gaurdian is higher
SOUVIK BORAL
(Practice)
(319 Points)
Replied 31 October 2011
1. Clubbing under Section 64(1A) is applicable for INCOME OF MINOR CHILD.
Therefore, if the child is major, there is no question of clubbing u/s 64(1A)
2. Income on clubbed income shall not be clubbed
Therefore, if the child is minor (married or unmarried), clubbing provision u/s 64(1A) shall be attracted. However, as because, interest on FD is an income on clubbed income, it shall not be clubbed.
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