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finance Person   05 April 2019

Money transfer to father and get back tax?

I am planning to use my father's demat account for share trading. My father is a pentioner and don't have any tax to pay.

So I am planning as follows:
1. transfer my money to father's account.
2. Do share trading from father's demat account.
3. since his income is low he don't have to pay taxes on his income on shares.
4. transfer back the net amount to my account from father's account.

Can I save some tax this way? is there any catch?
I think since father is in blood relationship to me he need not to pay tax when I send money to him or I need not to pay tax when I got money from him. Please confirm.


Learning

 1 Replies

Shashi Dhara   05 April 2019

U trade in Ur fathers name Ur father has to pay 15%tax if he sell shares within year for profit &10%if he sells share after one year for profit on profit amount.

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