Mutual Fund SIP by Grandmother to granddaughter

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

Replies (2)

All incomes of minors are clubbed with parents. Gift from grandmother (being relative) is exempt. See section 56.  However capital gains on sale shall be taxed in the hands of parent who has the higher income compared to the other. 

Regards

Sahana Murthy

Sahana is absolutely correct

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
13 October 2026
Accountant

Zerdi & Co. Chartered Accountants

Pune

B.Com

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details