Derivatives Trading in Minor's Name

Tax queries 601 views 2 replies

Seth

148 Points Joined March 2010

Hi,

Can a trading account be opened in Minor's name for trading in derivatives (Futures & Options), if the minor has a trading account???

Both parents are working and have their own sources of income - Father works as a salaried person & Mother is a doctor. The minor son is 2 years old and will apply for a PAN card with representative assessee as Mother.

Is it possible to club the income of trading with mother's income?

Have 2 questions:

1) if a trading account is opened in minor's name, whose PAN no. should be given for trading acccount - minor's, mother's or father's Pan no.???

2) The income generated from F&O trading will be added to mother's income or father's income?

Please let me know,

Thanks,

Replies (2)

Pankaj

Student

60 Points Joined December 2008

Hey no idea whether trading can be done in the name of a minor and i have not seen such a case but if its allowed trading should be done in the PAN No. of minor and it is obvious that it has to be clubbed with the parent whose income is higher of the two.