Mutual fund investment in child name

50000 per year is allowed tax free as gift for minor from unrelated people.

If the same amount is invested in MF in name of minor with growth option i.e. no dividends will be received only capital appreciation.   The amount after maturity of few years is taxable to parent ? or amount after the child becames adult is tax free for him.

given - 80c benefit taken in some other scheme.

          amount invested in EEE category MF

Replies (2)

When the gifted amount is invested in EEE category MF, the redemption proceeds will be tax-free in the hands of either of parent or major child.
 

Thanks. Sir. Any case ref. or relevant section I can keep in record for future purpose ?

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 27 October 2026
semi-qualified CA

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Final

View Details
Company
Featured ARTICLESHIP 31 October 2026
CA Articleship

apricus india

Navi Mumbai

CA Inter

View Details
Company
12 November 2026
Tax Product Specialist

BharatX.ai

Gurgaon

B.Com

View Details
Company
ARTICLESHIP 07 November 2026
Article Assisstant

DPV & Associates

Chennai

CA Inter

View Details
Company
Featured ARTICLESHIP 28 October 2026
CA- Inter and Articles

N N V Satish & Co.,

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 29 October 2026
Article Assistant (CA Inter / CMA Inter) - Thrissur

Varma Raja & Associates

Thrissur

CA Inter

View Details
Company
Featured 07 November 2026
Paid Assisstant

DPV & Associates

Chennai

CA Inter

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details