Pinky (a minor child of age 5 years) gets a gift on 20.11.2020 of ₹10,00,000 from her father's friend. On the same day, the amount of ₹10,00,000 was deposited as fixed deposit for 3 years in SBI in the name of Pinky by h

CS Executive · Tax Laws · PYQS · December 2021
Pinky (a minor child of age 5 years) gets a gift on 20.11.2020 of ₹10,00,000 from her father's friend. On the same day, the amount of ₹10,00,000 was deposited as fixed deposit for 3 years in SBI in the name of Pinky by her father. Interest of ₹35,000 was credited on such fixed deposit during the P.Y. 2020-21. State the amount of income and in whose hands the same will be subject to tax in A.Y. 2021-22.
(A) Income of ₹10,33,500 shall be taxable in the hands of father.
(B) Income of ₹33,500 shall be taxable in the hands of father
(C) Income of ₹10,33,500 shall be taxable in the hands of father or mother whose income before this clubbing is higher.
(D) Income of ₹33,500 shall be taxable in the hands of father or mother, whose income before this clubbing is higher.

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Income Tax Act, 1961

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