Yes, deposits held by minors are subject to TDS (Tax Deducted at Source). The interest earned on these deposits will be taxed if it exceeds the threshold limit of INR 40,000 in a financial year. The TDS rate is 10%, and if the minor's PAN is not provided, the rate increases to 20%.The credit for the TDS can be claimed by the parent or guardian in whose hands the minor's income is included.
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