I am NRI. I have some FDs in I. Rs. in NRO a/c in Indian Bank and shares of Indian Companies. I had earned / invested these when I was resident in India. If I will gift all these to my father or mother resident in India then -
a) will I or my parents be taxed?
b) Should I prepare any affidaviit or document for any future eventualities.
Thanks
Gifting ur shares and FD will not result to any taxation, niether to u nor ur parents.
Subsequent income received on FD and shares will be taxable to the transferee. In case of subsequent sale of such shares the cost for the purpose of capital gain shall be the cost at which u had bought the shares.
Yes it is important to prepare the documentation for gift.
Also income arising after you gift the assets shall be taxable in the hands of your father and mother.
Anuj
femaquery @ gmail.com
when donee gets revenue income then only taxable as tax law is only on receipts of money in money terms not in notional terms, for it is done to control money flows in the country uncontrolled, or that great work tax is like commission the union govt takes to its public exchequer not for abuse of that money!.. dr g balakrishnan, rapidanalysts @ gmail.com
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