Clubbing of minor income in parents ITR

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This query is : Resolved

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This discussion addresses whether cash gifts received by a minor child, deposited into their own bank account and used for investments like LIC or PPF, will be subject to income clubbing provisions in the parents' Income Tax Return (ITR). The consensus is that regardless of how the money is used, clubbing provisions will apply. A Public Provident Fund (PPF) account is suggested as a potentially better investment option for children.

Ajay l

Ajay l (Querist)
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25 April 2025 Hii..
My son is 2 years old. Usually during festival and other occasions he get gift (money) from relatives. Can i open bank account in his name and deposit cash in that account and use that money for LIC in his name?

Will it be clubbed in parents ITR?
Is their any other better investment option for children's?