Sale Value – The value of the sale by the receiver of the gift.Sale Date – The date of sale by the receiver of the gift.Purchase Value – The value of the purchase of the previous owner i.e.Purchase Date – The date of purchase by the previous owner i.e.STCG – Equity Shares held for up to 12 months from date of purchase by the sender to date of sale.LTCG – Equity Shares held for more than 12 months from date of purchase by the sender to date of sale.sender of gift to the date of sale by the receiver of the gift. Period of Holding – Calculate the holding period from the date of purchase by the previous owner i.e.To calculate the tax on gifted shares, here are important points to consider: Shares & Securities received on the occasion of marriage or inheritance or in contemplation of death of payer is exempt income since such gifts are exempt as per Sec 56(2)(vii)Ĭapital Gains tax would arise on the sale of shares.Shares & Securities received from a relative is exempt income since gift from relative is exempt as per Sec 56(2)(vii).If the monetary value (FMV) of shares & securities is more than INR 50,000, such gift is an IFOS income and taxed at slab rates.If the monetary value of shares & securities is up to INR 50,000, such gift is exempt from tax.Clubbing of Income – If the receiver of the gifted asset is a spouse or minor child, any income that arises directly or indirectly from such asset is clubbed with the income of the sender as per Section 64(1)(iv) & Section 64(1A) of the Income Tax Act.The sale of shares & securities is not taxable in the hands of the sender of the gift.Thus, the gift of shares and securities is not taxable in the hands of the sender of the gift. However, the definition of ‘transfer’ as per Section 47 specifically excludes gifts. The transfer of a Capital Asset is taxable as Capital Gains. ![]() ![]() ![]() As per Section 2(14) of the Income Tax Act, shares and securities are Capital Assets.The Gift Tax Act (GTA) was abolished in 1988 and thus sender need not pay tax on gifts.Thus, it is now possible to gift stocks to friends and relatives online. Trading platforms like Zerodha have built a platform to gift stocks, ETFs, and gold bonds after the introduction of e-DIS (electronic delivery instruction slip) by CDSL. Shares and securities is a movable property. Reporting in ITR – Tax on Shares Gifted.
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