New Delhi, Oct. 8 -- If you have opened a demat account for your child below 18 and are investing in mutual funds and shares on their behalf, you may wonder how the income from these investments will be taxed and reported in the ITR.

Under Securities and Exchange Board of India (SEBI) rules, a minor can hold a demat account, which must be operated by a guardian until the child turns 18. The guardian is generally the father or mother.

Here's what parents need to know about reporting a minor's investment income.

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Isha Sekhri, Founder, Isha Sekhri & Associates LLP, said, "A demat account is held in the child's name, with the parent operating it using the child's own PAN. It is the child's income but is clubbed in the parent's return."...