Shares

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Nirmal (Querist)
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21 October 2010 I have minor daughter on whose name shares are listed shares are there in Physical Form and not in Demat which were purchased from off market hence no STT Paid.Its long term shares.Now i want to sale the shares but she is minor with no demat account so as per the advice i am getting it transferred in my name and i ll be selling it. Can i know the Tax implication of it????

vrnanda

vrnanda (Expert)
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21 October 2010 HI Nirmal, shares are long term in the hands of your daughter. when u transfer to your name in order to sell. they will be considered as short term in your hands. and being expempt as long term capital gains, STT on the sale is sufficient.

incase u want to transfer shares in you name, hold them as a trustee being the minor daughter as a benefiary. and the check the the way to sell out the shares.

as far my knowledge i concerned, STT has been removed from the current financial year i.e. 2010-11. so normal taxes on long term capital gains would apply. however please consult other views as well.

Nirmal

Nirmal (Querist)
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21 October 2010 Hey Nanda thx for info... now when my daughter trsnsfer to me there won be STT then how will it be treated and what if she gifts me and i sale it then it ll long term and while selling i ll be paying STT hence TAx ll be Nil Rite ?

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CA Shiv

CA Shiv (Expert)
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21 October 2010 Nirmal... can you tell the value of the shares.

If its a huge amount than will think to reduce tax.
and if its a small amount than do transfer to your name by application to the company and ask them to dematerialise it directly to your account. Than can sell directly online and it will be taxed in your hand with LTCG or stcg depends upon the date which company puts.