The Brite 18 November 2018

Tax on FD in the name of minor under Mutual settlement

Hi, We agreed on an alimony amount under the terms of mutual settlement mediated through a court appointed mediator which includes setting up an FD in the name of our minor child. I am trying to figure in whose hands will the interest earned be taxed. Is there a way the tax can be avoided so the child does not suffer? If not, what can I do to avoid the interest earned being taxed in my (father) hands. Regards

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3 Replies

SIVARAMAPRASAD KAPPAGANTU (Retired Manager) 18 November 2018

Income of the Minor also is taxable in his/her name.

KAUSHAL SHAH 30 December 2018

Hi, Brite if you are filling your income tax return then the fixed deposit which is in the name of your minor child and on which interest is earned by him can be clubbed with your income while filling the return. 2) In order to avoid the interest earned being taxed in your hands you have to submit form no.15G/15H to the authority concerned.