Tax refund on FD : Can you get tax refund on FDs made in the name of children? Know details related to this

The income of the minor child shall be included in the income of the person from amongst the mother and father whose total income is higher after adding the income of the minor.

Saroj has made a fixed deposit (FD) in the name of his three children. Bank deducts TDS on these. The name of the father is on the PAN of the children. Can Saroj or her husband claim refund of tax deducted in their income tax return?

Come, let’s see what the experts answer.

• Amit Maheshwari, Partner, Ashok Maheshwari & Associates, says that as per section 64(1A), the income of a minor child shall be included in the income of the parent of the person whose total income is higher after adding the income of the minor.
• Any Such Income Included In The Income Of The Parents Is Exempted Up To Rs 1,500 Per Annum. This discount is for one child. Its benefit is available for a maximum of two children.
• If TDS is deducted on such income, then the parent (mother or father) in whose income the child’s income is linked can claim a refund of TDS. As per Rule 37BA(2), a bank declaration has to be filled for making such credit claim.

Let us now take the question of Narendra.

• Narendra bought 10,000 shares of Gitanjali Gems at Rs 8.25 per share. This share has now been delisted. Can he assign this loss and set-off it from other capital gains?
• Raj Khosla, founder and MD, MyMoneyMantra.com, says that once the stock is delisted, its trading reduces. But, this does not mean that it should be seen as a loss.
• Since, Narendra’s rights on the share still remain. So, he cannot show it as a loss. Those shares have to be sold to claim the loss. Only then, as an investor, Narendra’s right to shares will end.

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