Can we invest in the name of parent

Yes, Mr. Manish

It is possible that you gift of some amount to parents and investment their name to avail benefit of tax slab.

Yes, it's possible in case of parents, but not possible in case of spouse.
For spouse clubbing provision is applicable, whether you trasfer to spouse directly or indirectly.

Hi Sagar/Yudhishthir,

Can you please section for the reference as on multiple place i am receiving response that parent's interest income on your transfer fund will be taxed in your hand. So if you can share some reference for me that would be helpful.

Thanks,

Manish

Practically, gift must be paid from elder to younger otherwise provision for clubbing of income may be applicable.

@ Kamal Verma Sorry Even gift can be given from younger to elder but can't we transfer fund to our parents for their need and they can invest it.

Even if it's not allowed can you please share section which describe this SO that I can get more insight.

1. Any sum of money or any property received from any relative is exempt from tax as per section 56(2) of the Income Tax Act.
Son, daughter, mother, father ect. as defined in act are all considered as relative
So, Gift from Son to Parents is not taxable.

2. Clubbing of Income provisions are given under section 60 to 65 in income tax Act.it restrict
(i)Transfer of income without trasfer of assets.
(ii) Revocable trasfer of assets
(iii) Trasfer to Spouse and son's wife directly or indirectly.
there is no restriction regarding trasfer of money from son to parents. So, clubbing provision also not applicable

So, Conclusion:
Gifts made to parents are not taxable in their hands or in your hands. Also, clubbing does not apply for income earned on money gifted to parents. So, in case they decide to invest the money received from you, any income from such investment will be taxed in their own income tax return, and will not be clubbed with your income.

Mr.Sagar Patel is absolutely right.