Capital Gain on Gifted Shares to his Daughter

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Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2010 is there any tax liabilities(Capital Gain) when a father give there Share to his daughter's name?

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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17 June 2010 The provisions of Section 56(2)(v) makes a sum received without consideration as income in the hands of the recipient. This provision, however, makes an exclusion in respect of certain sums which are received by certain relatives.

One of the exclusions is in respect of sums received from an individual by a lineal ascendant or descendant of the individual.

The daughter being a lineal descendant of father, this exclusion will operate and the sums received from father by his daughter by way of gift will be taxable neither in your hands nor in hers.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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17 June 2010
Provisions not applicable in case the specified properties are received from a relative or in
other prescribed circumstances:
The provisions of section 56(2)(vii) inserted w.e.f. 1.10.2009 are not applicable in case the
specified properties are received from a relative or in other prescribed circumstances.
In the following circumstances the prescribed amounts or the value of the property received are
not chargeable to tax u/s 56(2)(vii)-
(a) Any receipt of sum of money or any property from any relative;
(b) Receipt on occasion of the marriage;
(c) Receipt under a Will;
(d) Receipt by way of inheritance;
(e) Receipt in contemplation of death;
(f) Receipt from a local authority as defined in the Explanation to section10(20);
(g) Receipt from any fund or foundation or university or other educational institution or hospital
or other medical institution or any trust or institution referred to in section10 (23C);
(h) Receipt from any trust or institution registered u/s 12AA.

not taxable at all.

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