tax saving

[palan]

I am a selaried employee of less than 7.5 lakh per year. So my tax liability is zero( a/c to new tax regime). But I do some investment in smallcase, mutual fund also trade sometime in future and option plus crypto.
So my overall income is exceed 7.5 lakh .
I just want to know that can I invest and trade with my parents demat account as my parents are retired now and has no income to save taxes also to give something them??
Is it possible and legal??

 

[17ysaurabh]

hi @palan
You are right.
You can invest the amount on your parents' behalf and save taxes. Just make sure the total capital gains is less than the basic exemption limit.

• The basic tax exemption limit is Rs. 2.5 lakhs for the old scheme and Rs. 3 lakhs for the new scheme.
• For senior and super senior citizens, the basic exemption limit is Rs. 3 lakhs and 5 lakhs respectively.

Note:
The amount you give your parents will be considered a gift received from relatives and will be tax-free. So, the capital gains are only taxable and again be adjusted against the basic exemption limit.

 

[ahesartamboli]

Correct, and make sense.. go for it