TMI Blogincome taxX X X X Extracts X X X X X X X X Extracts X X X X ..... Parents deposit fixed deposits in the name of children. when the child grows up and gets a job he has to pay income tax. then how can he declare the income from fd deposited by parents. how will they prove the source. - Reply By Ganeshan Kalyani - The Reply = Sir, deposit certificate is given by the Bank at the time of deposit. The name of the child and guardian is mentioned on it inter-alia oth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er details. The same should help you to prove the source. Thanks. - Reply By CS SANJAY MALHOTRA - The Reply = Till the time child attains the majority age, TDS is deducted and credited into Parents PAN account and income of child is clubbed with parents. When teh child attains the age of majority, PAN No. of child is taken and accordingly TDS is credited to his account. Amount given by parents ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to their children may be shown as gift and no tax is payable. - Reply By MARIAPPAN GOVINDARAJAN - The Reply = I endorse the views of Shri Sanjay Malhotra. - Reply By Ganeshan Kalyani - The Reply = Sir, there are two type of fixed deposit. One is interest pay out at regular interval and the other one is interest accrued and paid at the time of maturity. Sir, in case of interest paid regularly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the TDS shall be deducted first under the parent's PAN and later when he grow up and work and has PAN then TDS is deductible under his PAN. As rightly said by Sri Sanjay Sir. Sir my concern is if interest is paid at the time of maturity and the maturity amount is received by the child then grown up, should he need to add that maturiy amount to his total income to arrive at gross total income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Or how he should show the maturity amount . Is it within provision to show the maturity amount as gift at that time which in fact was received at his childhood. Please share your views. - Reply By CS SANJAY MALHOTRA - The Reply = Sh. Ganeshan ji, Banks deduct TDS on interest accrual irrespective of its payment whether on maturity or periodical basis. Hence, the interest income forms part of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parents till the child becomes major. - Reply By Ganeshan Kalyani - The Reply = Sir, thanks for sharing your views. Thanks. - income tax - Query Started By: - genu nambiar Dated:- 10-9-2016 Income Tax - Got 6 Replies - Income Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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