Bank FDs for children: How interest income will be taxed
Since the interest for full 15 years will be taxed at once, you need to evaluate the option of offering the income on accrual basis to minimise the overall tax liability
My son is 3 years old. I intend to make a 15 years cumulative fixed deposit in my son's name to create a corpus for him, which he will get when he turns 18. Am I supposed to pay tax on interest accrued on that fixed deposit every year?
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