I wish to apply for IPOs & take part in buybacks through spouse's account, to take advantage of the "small investor" provisions. I am trying to understand the tax treatment of all this.
My spouse's tax rate is significantly lower than mine.
Let's say I give her some money, and she invests in an FD. I assume the clubbing provisions will be attracted, and the interest will be taxed at my rate.
Will the same provision apply for an IPO - if I give her 15,000, and, say, she makes a profit of 5,000, who will be taxed?
Let's say I take the principal back, (basically give an interest free loan) what will be the tax treatment?
On this note, do similar clubbing provisions apply to parents?
My spouse's tax rate is significantly lower than mine.
Let's say I give her some money, and she invests in an FD. I assume the clubbing provisions will be attracted, and the interest will be taxed at my rate.
Will the same provision apply for an IPO - if I give her 15,000, and, say, she makes a profit of 5,000, who will be taxed?
Let's say I take the principal back, (basically give an interest free loan) what will be the tax treatment?
On this note, do similar clubbing provisions apply to parents?