Tax liability on sale of gifted shares
- 456
- 7
-
- Last Comment
Hi,
I have a query regarding gifting shares. I have gone through few posts here & Quicko article on this but I have not received a clear picture.
A mother & her son (major) are both separate Zerodha account holders. Mother owns shares in her demat account that she held for more than 10 years. She wants to gift all those shares to her adult son. I have researched that such a transfer will not attract any income tax liability to either of them except for a nominal off-market transfer fee. My query is as follows.
Lets say the son sells the shares within a year of the gift transfer, say, in 6 months.
- The capital gain would be LTCG since the original purchase date would be considered. Is this correct?
- The LTCG will be taxable in the hands of the son & Clubbing Provisions of IT Sec 64 (or 60 or 61) would NOT come into play. Is this correct?
Thank you very much.!
Disclaimer
We are not SEBI/IRDA registered. The information provided herein is for education purposes only. We will not be responsible for any of your profit/loss with this channel's suggestions. Consult your financial advisor before making any decisions.
6 Comments
|
4 Dimers
- Sort By
https://www.desidime.com/discussions/tax-liability-on-sale-of-gifted-shares?page=1#post_10033724
confirmed from a fresher CA, he mentioned the original purchase amount needs to be shown in exempted income.
Need some veteran advice for confirmation.
Need some veteran advice for confirmation.
View 4
more replies
![replyuser](https://cdn1.desidime.com/avatars/default/medium/missing.png)
Click here to reply
I had the same question and found this:
So to summarize, son has to show 2 things in his ITR: