Can you claim refund on tax deducted on FD in the name of your children?

I have opened fixed deposits on behalf of my three minor children, on which the bank has been deducting TDS. My children’s PAN bear their father’s name. Can I or my husband claim refund on the tax deducted in our tax returns?

Amit Maheshwari, Partner, Ashok Maheshwary and Associates says, "As per Section 64(1A) of the Income-tax Act, income of minor child shall be included in the income of the parent whose total income after including minor’s income is greater. Any such income included in the parent’s income is exempt up to Rs 1,500 per minor annually, for a maximum of two children. If TDS is deducted on such income then the parent with whose income the minor’s income is clubbed can claim refund of the TDS amount in his/her return. According to Rule 37BA(2), such credit can be claimed by that parent by filing a declaration with the bank to report such tax deduction in the name of the said parent."

I had bought 10,000 shares of Gitanjali Gems at Rs 8.25 per share. The stock is delisted now. Can I report this loss and set it off against other capital gains?


Raj Khosla, Founder and Managing Director, Mymoneymantra.com says, "Delisting the stock makes it less tradeable, but does not imply that same can be treated as a loss. Since you continue to hold rights of the stock, you cannot report it as a loss. To claim loss, you have to relinquish the rights in the stock by selling the same."