E-commerce websites like Amazon, CRED, others oftentimes runs free to play gaming contests like spin-the-wheel and others. For the purpose of income tax these games are a game of chance and are taxed at flat 30% rate plus cess, etc. Nonetheless there are some things to consider if an individual has won prizes by playing similar offline or online games.
Multiple corporate and some government employees would have received their Diwali bonus. Further it is not always necessary to receive Diwali bonus in cash. There are multiple other avenues to receive Diwali bonus like e-voucher, gift card and pre-paid gift cards issued by banks. Know the income tax implications of receiving Diwali bonus through each of the instruments.
A parent can choose to open a demat account in the name of their minor son or daughter in order to gift them various securities like shares, etc. However it must be noted that although parents can give their own bank account at the time of account opening, but at the redemption the sale proceeds would only be credited to a minor s bank account.
A parent can open a bank account in the name of their minor son or daughter in order to invest in fixed deposits (FD), recurring deposits (RD) or others. The process is easy and requires the minor s birth certificate or Aadhaar, depending upon the bank. Parents will however have to give their Aadhaar, PAN or any of the officially valid documents (OVD).
Investments in the name of minor childrens for future expenses like college education, marriage, others can be done in many instruments including shares, mutual funds, bank fixed deposit (FD), post office schemes among others. Further if the income of a child is clubbed with the parent then a tax exemption is also given.