Income tax on court deposit held in child name

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Disrict Court awarded 28 Lakh compansation to my daugher for loss of mother in accident.

I have received 24 Lakh with interest, Court asked to deposit the award money as FD in a bank and allowed to withdraw monthly interest for daughter expenses.

I have included the interest received about 9 lakh during the case settlement in my income tax return since TDS deducted and FORM 16A was received in my Name.

Now my question is:-

1) Is FD interest earned monthly taxable ? If taxable how to show in tax return

Please advice

Regards

Umesh

 

Replies (3)
income from other source

Yes... FD interest is taxable under Income Tax. You can show it under "Income From Other Source" as Interest.

Thank you for the reply.

When I add the interest to my income. Tax slab goes to 20%.

Any advice to show as it is daughter income. filing income tax return separatly

OR

When I club the income with my  income ? Can I claim Rs. 250000 basic exemption my self and daugher separatly. ?

regards

Umesha M K


CCI Pro

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