Demat Account for Minor

[S_kumarP]

Zerodha allows minors to open demat accounts, which can be used for selling equities and mutual funds. While selling, will the capital gain be attributed to the minor or calculated under the guardian’s name? Is there any tax benefit associated with minor’s demat account?

[Surbhi_Pal]

Hey @S_kumarP,

I’ve written in detail about this here:

What are the tax implications on minor’s demat account?

A demat account is mandatory for investing in shares, ETFs, and listed bonds. Some parents may wish to invest in shares in their children’s names. To do this, they are required to open a demat account for their minor child. However, it’s important to note that a minor’s demat account must be managed by their parent until the child turns 18. At that point, it can be converted into an individual account. What are the tax implications on a minor’s demat? Firstly, a minor cannot buy securities. T…

Lemme know if you have any further queries on this.