Tax implication on investment in minor name

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Respected Seniors,

I would like to request you to guide me about tax implication in following cases .

1) Legal guardian of a minor is giving a gift to minor and the same is invested in PPF A/c with bank.

2) Legal guardian is investing in mutual funds on growth basis in the name of minor which will  transferred to him as gift when he turn adult.

Please also do suggest whether both the above transaction are permissible by the law or not.

Regards and thanking you in advance.

Replies (1)
Gift from Relative is exempt and therefore under both the cases gift income will be exempt in the hands of minor. Furthe interest on PPF that is earned by the minor will also be exempt. Both the above mentioned transaction are allowed.

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