kallu (Software Engineer) (113 Points)
14 October 2013
I have some taxable bonds/NCDs in my demat account. I am in 30% bracket.
To save taxes, can I open a demat account in my minor child's name and gift some of the NCDs to her demat account.
Will this come under "clubbing of income"?
In the future, can my child gift the principal back to me and keep the interest portion of it.
Mihir
(Wealth Manager)
(5293 Points)
Replied 15 October 2013
The income arising from bonds/NCD shall be clubbed with your income.
*RENU SINGH *
(✩ §m!ℓ!ñġ €ม€§ fℓม!ñġ ђ♪gђ✩ )
(21627 Points)
Replied 15 October 2013
Yes, even such income will be clubbed as the same is not earned by minor on account of some skills etc.
As per section 64 (1A) , it will be taxable as part of your salary.
Rajesh M Patel
(CA Student)
(54 Points)
Replied 16 October 2013
Yes Clubbing Provision is applicable
kallu
(Software Engineer)
(113 Points)
Replied 16 October 2013
| Originally posted by : Rajesh M Patel | ||
 |
Yes Clubbing Provision is applicable |
 |
Thanks for your replies.
In future, can my child gift me the principal back or there will be some tax on that gift?
TKKKKKK
(PRACTICING CA)
(3268 Points)
Replied 21 October 2013
If the son give gift to father, Taxability will not arise.
CAclubindia
