16 April 2012
When amount is invested in the name of Minor, income from minor account has to be clubbed in the income of mother / father whose income is higher.
What about the principal investment whether it has to be shown in the balance sheet of parent or separate books of accounts should be maintained for minor? As over a period of time, investment will grow and will have to be transferred to minor when he becomes major.
16 April 2012
No need to maintain separate books as the minor is not carrying on any business. . Principal investment can be shown as Gift by the parent to the minor. .
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