Mutual Fund SIP by Grandmother to granddaughter

Sujit Talukder (service) (719 Points)

13 November 2010  

I have a query on the folowing issue:

An NRI grandmother wants to make Investment in equity oriented Mutual Fund scheme  in the name of her resident minor granddaughter by way of monthly SIP. The monthly amount of SIP would be around Rs 10,000/-. The minor granddaughter and their parents are based in India.

Now,:

1. Whether any clubbing provision will apply for the SIP transactions both as for gift and capital gains?

2. Whether clubbing will be applicable for grandmother and granddaughter? with parents?

Expecting replies from senior members specific to the query and explanatory in nature.

Regards

Sujit Talukder