Did anyone know about income tax on FDs? Do we get any tax benefits if we have a FD in child’s name? (who is a minor and have a family account with a bank. HDFC has an offer, where you can have bank accounts for your family members incl a minor child with your account.) Any difference in having a FD in your name and your child’s name?
Hi i used to work for State Bank of Hyderabad in the past and i left the job 6 months ago. As far as i know the account you opened for your minor child comes under your account. You are charged income tax even on that minor's account. There is no difference between your account and a minor's FD. That FD is also counted as in your account. During creation of your child FD they use your CIF(customer Information File) which is an information file about you. As, income tax is calculated based on the CIF your child's FD is considered as your income. You can also ask the bank employees about this as the bank rules may differ from one another Hope this information helps you.
