Is it okay to create demat on fathers details and proofs to avoid tax?

pjharii · February 23, 2021, 12:21pm

Is it okay to create a Demat account on the father’s details and proofs to avoid tax? Father has no income and 60+ aged.
If yes, then can we use the same phone number (which we used for our existing Demat account) to his account?

Vij · February 23, 2021, 1:17pm

Technically okay, as long as your father files IT returns reflecting the gains. And I suppose the capital you bring for that account will be as gift from son to father.

pjharii · February 23, 2021, 2:09pm

Okay but I don’t think the annual profits on that account will exceed 2 or 2.5 lakh. So, he need not file IT returns, right? As i mentioned, father has no income.

The capital is - I will be transferring funds digitally into his bank account. I will only be maintaining everything on demat - the funds-deposits, the buy - sell, the withdrawls.

Stonecold · February 23, 2021, 2:20pm

Ask the question to @Quicko team.

Vij · February 23, 2021, 2:24pm

Looks simple and straightforward. I don’t see an issue. Basically his source of funds is gift from son and at the scale you plan to operate, it is under the radar (not that you are doing anything wrong anyway).

pjharii · February 23, 2021, 2:26pm

where is quicko?

Vij · February 23, 2021, 2:58pm

@Quicko to the rescue

ksksat · February 23, 2021, 11:21pm

@pjharii these type of ethical dilemma questions dont put in public forum and invite attention.

Vij · February 24, 2021, 3:12am

Yes, usage of words isn’t ideal. But your father can have a demat account as can your wife. It is their right

And as his son, you can gift him your tax paid money without him getting taxed for it.