Gift of Gifted unlisted shares
This query is : Resolved
02 October 2024
Hi,
I have a query regarding gifting shares.
I want to gift shares of Unlisted Co. to My father's brother's wife (Aunt). My query is as follows.
Lets say subsequently my Aunt wants to gift those shares to her son.
There would be no capital gain or income from other source & no taxable income, either for transferor or for transferee since in both cases the shares are gifted to RELATIVE. Is this correct?
& Clubbing Provisions of IT Sec 64 (or 60 or 61) or any other deeming provisions would NOT come into play. Is this correct?
Thank you very much.
I have a query regarding gifting shares.
I want to gift shares of Unlisted Co. to My father's brother's wife (Aunt). My query is as follows.
Lets say subsequently my Aunt wants to gift those shares to her son.
There would be no capital gain or income from other source & no taxable income, either for transferor or for transferee since in both cases the shares are gifted to RELATIVE. Is this correct?
& Clubbing Provisions of IT Sec 64 (or 60 or 61) or any other deeming provisions would NOT come into play. Is this correct?
Thank you very much.
02 October 2024
Gift received by your aunt from you is taxable, as you are not RELATIVE to her as per sec. 56(2)(x) IT act.
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03 October 2024
Thank you, Sir.
and what if,
I gift shares of Unlisted Co. to My Mother.
She gifts those shares to my father's brother's wife (Aunt)
and,
my father's brother's wife (Aunt) gifts those shares to her son.
Kindly reply
Thank you very much.
and what if,
I gift shares of Unlisted Co. to My Mother.
She gifts those shares to my father's brother's wife (Aunt)
and,
my father's brother's wife (Aunt) gifts those shares to her son.
Kindly reply
Thank you very much.
03 October 2024
That is OK, but there can be shorter route.
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04 October 2024
Father's brother's wife (Aunt) is a relative as per section 56.
04 October 2024
Reassess Gifts from both angles A to B & B to A, and reply again.
11 October 2024
Good luck ....
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