Can my mother gift her equity shares to me without involving any tax implication to her or me?
Ronnie fernandese (RETIRED) (111 Points)
17 January 2013Can my mother gift her equity shares to me without involving any tax implication to her or me?
shikhar
(LEARNER )
(1394 Points)
Replied 17 January 2013
YES FRIEND YOUR MOTHER CAN GIFT U HER EQUITY SHARE WITHOUT ANY TAX IMPLICATION..........BECAUSE AS PER SEC 56(2)(VII), A GIFT IS RECIVED BY RELATIVE (MOTHER) CANT BE TAXED IN INCOME TAX....................AND (AT TIME OF SALE) IF ITS HOLDING PERIOD IS MORE THEN 1 YEAR THEN , IT SHOULD ALSO BE EXEMPTED FROM TAX, AS LONG TERM CAPITAL GAIN,
CA D.C. Bansal
(Accounts Head)
(283 Points)
Replied 18 January 2013
As gift tax has been abolished and sec 56 does not cover the gift from the relatives. Hence there is no tax Implications on this transaction.
R S B
(C.A FINAL)
(91 Points)
Replied 18 January 2013
As per sec 56(2) (vi) &(vii) any gift received from relative(include mother)in cash Or kind shall be exempt from any tax implication.Please refer the link below:
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
CAclubindia
