Claiming Tax Benefits for SGB Gifted to Minor Daughter's Demat Account


I have a question regarding the tax treatment of Sovereign Gold Bonds (SGBs) that I have gifted to my minor daughter. Here are the details:

  • I have gifted SGBs to my 8-month-old daughter, and the bonds are held in her demat account.
  • I am the guardian of her account and responsible for her financial matters.
  • I understand that the income generated from the SGBs (such as interest) would be clubbed with my income under the provisions of the Income Tax Act.

My questions are:

  1. Rebate Eligibility: While filing my Income Tax Return (ITR), am I eligible to claim any tax rebate or benefit for the interest income from these SGBs, considering it is ultimately for my minor daughter?
  2. Declaration: How should I declare this income in my ITR? Is there a specific section or form where I need to mention the clubbing of this income?
  3. Documentation: Are there any specific documents or proofs I need to submit along with my ITR to support the claim for this gifted SGB?

Thank you for your assistance.

Best Reagrds,
Vikas Salve

Hey @VIkasDsalve,

You do get an exemption of ₹1500 on income that is clubbed.

Clubbed income needs to be reported in schedule SPI (Specified Person’s Income).

You need not submit any documents as proof while filing the ITR.

1 Like

Thanks @Surbhi_Pal for quick and clear reply

A separate mutual fund folio must be created to invest in the name of the minor.