Trading on your parents DEMAT AC

[Arnab Roy]

Hi All ,
I am pretty new to the community. I have a question , I want to transfer a lump sum amount of Rs 40K every month to my Mother's account and I want to open a Demat account on her name and trade from the transferred sum. Will there any tax implication on my ITR or my Mother need to pay LTCG / STCG on her ITR . Just to mention my mom has no source of income and does not pay any tax or file returns. Please help me solve my doubt.

 

[launchcraft]

No tax implications for you as transfer of any amount within blood relation is tax exempted and you don't need to provide any details.
For you mother until and unless the amount transacted from her account is less than taxable income it will be exempted, but if you earn more and more profits and her income comes in the taxable range, you need to pay short term capital gain/STCG.
For more info, you can drop a message.

 

[Arnab Roy]

No tax implications for you as transfer of any amount within blood relation is tax exempted and you don't need to provide any details.
For you mother until and unless the amount transacted from her account is less than taxable income it will be exempted, but if you earn more and more profits and her income comes in the taxable range, you need to pay short term capital gain/STCG.
For more info, you can drop a message.

Thank you so much for your sharp response..happy to be a part of this community.

 

[launchcraft]

Thank you so much for your sharp response..happy to be a part of this community.

Always there to help people of this community.