tips to Save tax on mf and stock investment

yes, all individual is allowed to be exempt from paying tax, if the earnings are below 7L.

So, if your income is already greater than 7L then you can invest in MF/stock using your mom account and the earning up to 7L will be exempted from the tax.

You can skip filling ITR when you are only investing/buying. If you sell anything then you need to fill ITR. You need to fill out an ITR, if you make any profit on your mom's account.

Stocks and mutual funds are great, you only have to worry about taxes on redemption or selling. For accumulating returns that need tax planning,  you will have to invest for years, assuming you are investing only a few thousand every month.

But you have a GREAT opportunity getting tax-free returns with your mother's situation on fds.

Since your mother doesn't have any other income all the interest on fd will be tax-free. With the sky high interest now, move your fds and even rds to your mother's account and enjoy no risk returns from 7.5 to 9.6%. If your mother is a senior citizen.

Understand how Short term and Long term capital gains works for both Equity and Debt funds. If your mother earned Short term gain, your mother have to pay the Income tax regardless of her income. For example, your mother is investing in one of the scheme under Equity category via SIP and withdrawing within a year, she has to pay 15% of the profit. So, learn how we are taxed. More information here: https://cleartax.in/s/different-mutual-funds...ed

You should also read this article: https://news.cleartax.in/optimise-your-taxes-by...

So, if there are Capital gains then it is better to file IT returns. Also note that, the individual will be taxed only when they redeem their fund units.

No one mentioned about clubbing of income here. If you transfer funds to your mother's account and invest that amount  in equity or fd, then anything earned on that investment would be clubbed to your income only. However anything earned on the returns will not be clubbed. As you are planning to invest in equity/mf only so better to invest it directly on your own account instead of using your mother account.

Important question

Let's say my income is more than 20L so obviously I will fall under 30% tax bracket..

Now If I invest in mf and sell after 1 year with profit say 50k ( ltcg under 1L)

So this 50k will not incur any ltcg tax but will this 50k profit gets added to my income and will I be charged 30% for this amount?