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?
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.
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.
Ask the question to @Quicko team.
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).
where is quicko?
@Quicko to the rescue
@pjharii these type of ethical dilemma questions dont put in public forum and invite attention.
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.