RAKESH JAIN (RETIRED COMPUTER PROFESSIONAL) (369 Points)
09 May 2011Dear Sir/Madam,
I want to transfer/gift some shares from my Demat A/C to my son's Demat A/C. Is any Income Tax is to be paid in this case.
If yes, who has to pay the Tax (myself or my son) & how to calculate the value of tax if I mention the value of consideration 0. Is it OK if mention the value of consideration 0?
Thanking you. Best regards, RAKESH
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 09 May 2011
no tax on gift from father to son
make a statement on plain paper mentioning date of acquisition , no of shares, cost value of every share this statement he will need at the time of booking profit, to calculate capital gain.
however u may have to pay nsdl charges towards shift of shares from yours to son.
Ashish Jain
(.Net Developer)
(641 Points)
Replied 09 May 2011
no tax paid on gift in this situation..............
RAKESH JAIN
(RETIRED COMPUTER PROFESSIONAL)
(369 Points)
Replied 11 May 2011
Thanks to everybody who replied to my query.
For share transfer the value of consideration is to be filled. I guess this is meaningful only if the share is being sold. But in case it is being gifted/donated, the value of consideration must be 0? Kindly comment.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 11 May 2011
to fill TIFD, fill "off market trasaction /purpose "gift" / value "zero"" some banks does not allow zero, so u can fill notional value or face value as printed on certificates, it does not matter at all for your transaction.
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