On 31.10.2020, Raju (Minor child) gets a gift of ₹15,00,000 from his father's friend. On the same day, the amount is deposited as fixed deposit in Raju's bank account. On the said deposit, interest of ₹15,000 was earned

CS Executive · Tax Laws and Practice · PYQS · June 2021
On 31.10.2020, Raju (Minor child) gets a gift of ₹15,00,000 from his father's friend. On the same day, the amount is deposited as fixed deposit in Raju's bank account. On the said deposit, interest of ₹15,000 was earned during the F.Y. 2020-21. In whose hands the income of Raju shall be taxable ? (Assessee has not opted for section 115BAC).
(A) Income of ₹15,13,500 shall be taxable in the hands of Raju's father.
(B) Income of ₹15,15,000 shall be taxable in the hands of Raju's father.
(C) Income of ₹15,13,500 shall be taxable in the hands of Raju's father or mother, whose income before this clubbing is higher.
(D) Income of ₹15,15,000 shall be taxable in the hands of Raju's 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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