Do not Invest Money in Your Child's Name to Save Taxes Without Watching Sharan Hegde's Reel

An eligible tax payer shed's handsome amount every year in the name of taxes if he/she falls in a tax slab. Many of us try to save taxes by investing money in various portfolios, one such method is investing money in your child's name. Are you considering investing money in your child's name as a means to reduce your tax liability? Well, hold on! Sharan Hegde popularly known as 'financewithsharan' who is a popular finance influencer shares valuable insights on how one can invest money in their child's name to save taxes.

What is Clubbing of Income?

Income generated from investments held under the names of minor children will be subject to taxation under the parent with the higher income.

For instance, if one parent falls within the 30% tax bracket while the other is in the 20% tax bracket, the income will be taxed under the parent with the higher income. This is in accordance with the income clubbing regulations.

Right Way To Invest Money in Your Child's Name To Save Taxes

Sharan explains that - when you invest money in the name of an adult child, who is 18 years or older, the income will be taxed in their hands and will not be subject to income clubbing because they are considered a major family member.

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Sharan Hegde, widely recognized as "financewithsharan," has emerged as a prominent finance influencer. With a knack for simplifying complex financial concepts, he educates and empowers his audience on money management, investments, and financial literacy. His engaging content and valuable insights have made him a trusted source for financial guidance.