POSTED BY October 4, 2010 6:05 pm COMMENTS (2)ON
I am a salaried person and have invested in Mutual Fund through SIP for tax saving and in other Mutual Fund which does not provide tax benefits. Now I would like to start investing in ETF funds and shares also. For that I need to have a demat account.
I was thinking of opening demat account in my wife’s name (she is housewife) and start investing. My query is whether it is right to open demat account in her name and start investing. What will be pros and cons (tax wise mainly), by investing in her name.
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2 replies on this article “Demat Account”
but as per clubbing of income rules it will be of no use to you as the income generated through that investment will be treated as your income only.
Yes you can go ahead and open a demat account in your wife’s name and invest on her behalf. If her income exceeds the taxable limit then only she will have to file returns.