Tax implication on investment in minor name

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.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 29 October 2026
Article Assistant (CA Inter / CMA Inter) - Thrissur

Varma Raja & Associates

Thrissur

CA Inter

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details
Company
Featured 27 October 2026
semi-qualified CA

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Final

View Details
Company
10 November 2026
Direct Tax Manager

CAAQ CONSULTANCY PVT LTD

New Delhi

CA Final

View Details
Company
Featured 07 November 2026
Paid Assisstant

DPV & Associates

Chennai

CA Inter

View Details
Company
ARTICLESHIP 25 October 2026
Article Intern (CA Articleship)

Arpan Bohra & Co

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 23 October 2026
CA Articleship / Article Assistant

M N Rao & Associates LLP

Vijayawada

CA Inter

View Details
Company
31 October 2026
Accountants

sankaran and krishnan

New Delhi

B.Com

View Details