Can I invest on behalf of my mother?

Consent letter being duly signed by your mother ( format available from broker) may be submitted at the time of opening demat account. You can very well invest on behalf of your mother. All the transactions will be officially hers and she’ll b liable to pay taxes n file returns. You can do it.

Can I use my parents account for trading?

An NRI can trade using his father’s trading account. However, the father would be liable to pay income tax on any gains arising from such investments. An NRI can transfer money to the father’s bank account as a gift or loan which would be linked to the trading and Demat account.

Can I trade in my mother’s account?

You can open an account in your mother’s name but you cannot link your bank account to her trading account. As per law, the trading linked bank account should belong to the same person. You would have to first transfer funds to your mother’s bank account and from there to her trading account for trade.

Can I do stocks under my parents name?

A minor can’t open an online brokerage account on his own. However, it is possible for someone under the age of 18 to buy and sell stock using an account with her name attached to it. In order for a minor to open a brokerage account, a parent or a guardian must also be on the account.

How can parents save money on taxes?

If both of your parents do not have a high income, then you can avoid tax by gifting money to them. They can then use this money to invest in their name in tax-free schemes and earn an additional interest income. If the income earned is below Rs 5 lakh, they don’t have to pay tax on it.

How your parents can help you save tax?

You can invest in your child’s name in instruments like PPF, certain mutual funds, ulips and traditional insurance plans, as these are entitled to tax benefit under Section 80C. However, the income will be clubbed with yours and taxed at applicable rates. Instruments like the PPF are tax-free.

What is a good family investment?

Your 401(k) or a similar workplace plan. Traditional and Roth IRAs. A spousal IRA if one of you doesn’t work. Health Savings Accounts if one or both of you is enrolled in a high deductible health plan.