Jai Kumar (business) (17 Points)
19 June 201750000 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
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177824 Points)
Replied 19 June 2017
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.
Jai Kumar
(business)
(17 Points)
Replied 20 June 2017
Thanks. Sir. Any case ref. or relevant section I can keep in record for future purpose ?
CAclubindia
