Lesson 23 of 50 for advisers · Goal SIPs in a child’s name · 4 min read · Reviewed 13 Nov 2026
Payment may come from the minor’s account, a parent’s or guardian’s, or a joint account. Redemptions go only to the minor’s verified account. At 18 the child completes KYC and SIPs pause until the folio changes to major. The child’s income is added to the higher-earning parent’s, with ₹1,500 a child exempt under the old regime.
Since 12 May 2023, a minor’s investment may be paid from the minor’s own account, a parent’s or guardian’s, or a joint account of the minor with a parent.
Whatever account paid in, redemptions go only to the minor’s verified bank account.
At 18 the child gives full KYC and new bank details. SIPs, STPs and SWPs are paused until the folio changes to major.
Until then, the child’s income is added to the income of the parent who earns more. Up to ₹1,500 a child is exempt under the old regime, but not the new default one.
Key idea: Plan for the pause at 18: a SIP set up for a 15-year-old stops when they turn 18 until the folio is updated.
Try the calculator and the one-question quiz on this page to check your own numbers.
Income from the child’s own work, skill or talent, and the income of a child with a disability under section 154.
Section 99 of the Income-tax Act 2025, which carries over section 64(1A) of the 1961 Act.
Yes, since 12 May 2023.
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