Can tax be saved by taking PAN card for minor

[samkapoor77]

Somebody was discussing in office that people nowadays get PAN card for their minor kids and route their investments through minor child. Does it help in saving tax in any way?

[Sameer Kapoor]

It is true that people get PAN card for their minor child because for most of the investments, PAN card is necessary even for a minor investor. Coming to tax savings through this ? it is not possible. Whatever an investment on minor’s name earns will be clubbed to the income of the higher earning parent of the minor and the said parent will have to bear tax on it.

[Author]

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