TAX on fixed deposit yielding monthly interest, Income Tax

[genu nambiar]

IF a parent deposits an amount in the name of his major child out of his pension in a cooperative bank where no kyc or pan card is attached to the account who will have to pay the tax? the deposit yields monthly interest? what will be the case if the deposit is made in joint name of parent and his son who is a major but unemployed?

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

Since the child is the major the interest from the deposit is his income. If the deposit is made in joint name of parent and his son, the parent may get income fully and liable for income tax. If it is proportioned, the due for the major child will be his own income.

[Ganeshan Kalyani]

It will be taxable under Income from Other source in the hands of the major child.