Tds on interest earned on deposit in minor's name

sunil butaney (Tax Practitioner) (39 Points)

16 February 2012  

MY CLIENT IS A MINOR. HIS FATHER HAS INVESTED A SUM OF RS. 5 LACS IN A COMPANY UNDER HIS GUARDIANSHIP. NOW THE COMPANY SAYS THEY NEED PAN OF THE MINOR AS THEY ARE SUPPOSED TO DEDUCT TAX OF THE PAYEE AND IN THIS CASE THE PAYEE IS MINOR. THEY ARE NOT ACCEPTING THE PAN OF THE GUARDIAN.

MY PROBLEM IS :

IF TDS IS DEDUCTED WITH THE PAN OF MINOR WHO AND HOW IT WILL BE CLAIMED SINCE THE MINOR DOES NOT HAVE ANY OTHER INCOME - HE CANNOT FILE HIS RETURN OF INCOME AND THE GUARDIAN CANNOT CLAIM CREDIT OF TDS DEDUCTED ON ANY OTHER PAN THAN HIS OWN.

COPY OF THE LETTER FROM THE COMPANY IS ATTACHED.