Any one using HDFC minor account?

[Santhosh]

If I open Minor account , Can I transfer money to minor account and from minor account more than 1 lac in netbanking?

 

[anujdit]

HDFC minor account is open with some major account holder only as guardian. So there is no restriction on transfer limit. PAN of guardian will be used for transaction recording.
i have my son's account with wife as guardian.

 

[Santhosh]

HDFC minor account is open with some major account holder only as guardian. So there is no restriction on transfer limit. PAN of guardian will be used for transaction recording.
i have my son's account with wife as guardian.

Reason for Minor account open ?

 

[sadhunath]

Reason for Minor account open ?

You can buy MFs for your kids.. remember that any withdrawal/interest earned will be aggregated on guardian PAN.

This type of MF accumulation can be helpful when you want to transfer some part of your wealth to your children's education/marriage/inheritance etc without you incurring capital gains tax.

 

[Santhosh]

You can buy MFs for your kids.. remember that any withdrawal/interest earned will be aggregated on guardian PAN.

This type of MF accumulation can be helpful when you want to transfer some part of your wealth to your children's education/marriage/inheritance etc without you incurring capital gains tax.

Assume I bought MF worth 20 lacs over a period like 8 years . Baby age at that time 12 years

Can I withdraw 10 lacs from MF at that time to minor bank account?

 

[Santhosh]

HDFC minor account is open with some major account holder only as guardian. So there is no restriction on transfer limit. PAN of guardian will be used for transaction recording.
i have my son's account with wife as guardian.

How to transfer money from Monir account to Guardian account?

 

[sadhunath]

Assume I bought MF worth 20 lacs over a period like 8 years . Baby age at that time 12 years

Can I withdraw 10 lacs from MF at that time to minor bank account?

Withdrawal should only happen after the minor attains major status so that he/she will incur the tax liabilities.

Since, they won't be earning anything at that time, it will essentially be tax free.

 

[Santhosh]

Withdrawal should only happen after the minor attains major status so that he/she will incur the tax liabilities.

Since, they won't be earning anything at that time, it will essentially be tax free.

I will withdraw money from minor account as guardian, why need to wait untill major.

Do we have any restriction on this?

 

[RajS]

Withdrawal should only happen after the minor attains major status so that he/she will incur the tax liabilities.

Since, they won't be earning anything at that time, it will essentially be tax free.

How is it tax free? Capital gains are taxed irrespective of earning except default exemption of 1.25L (at this moment). In future there may be some changes, not fully exempted.

 

[thanix]

I will withdraw money from minor account as guardian, why need to wait untill major.

Do we have any restriction on this?

You can. Essentially you are investing in minor name and selling it. Getting the sale proceed in minor account and transfer to your account.

But why do you want to do this way? You can simply do with your name and account itself.

 

[sadhunath]

I will withdraw money from minor account as guardian, why need to wait untill major.

Do we have any restriction on this?

because if you withdraw the MF units while the minor is not a tax resident, the capital gains tax will be accrued to your (guardian's) account.

• When a child turns 18 and has no other source of income, the tax obligation is typically minimal or non-existent. This would be significantly less than what parents, probably in a higher income tax bracket, would pay. [refer]

 

[sadhunath]

How is it tax free? Capital gains are taxed irrespective of earning except default exemption of 1.25L (at this moment). In future there may be some changes, not fully exempted.

Yes. For equity, yes.

Even in equity, you as a guardian might have other withdrawls, which in addition to the MF units in minor's account may exeed 1.2L limit.