Trading on Parent Demat Account

Trading
1

Hi All,

Need a quick help to understand few things.

I already having Zerodha trading account which I like to use for long term equity investment but for short term trade or swing trade or intraday trade, Can I use parent DMAT account like mother(house wife) new account? Purpose is tax saving. If I continue my account then It will attract more tax on my total year income.

Second, Can I open Zerodha trading account on my mother’s name? Is any legal issue as she is not earning anything?

Third, even I open new account on my mother name, Can I transfer fund(deposit) from my bank account to her trading account? Is any legal issue?

Thanks,

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2

Trading account and bank account has to be in the name of the same person while linking. You can open a trading+demat account in any major’s name but F&O requires an income proof to activate. Equity you can trade without income proof.

Also, you can trade in anyone’s account if both parties agree, no restrictions. Taxe returns have to be filed by the account holder for profits generated.

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