Hi
If I transfer shares as gift to my mother in law (daughter to mother in law), and subsequently sell those shares, what will be the tax implication, provided the shares were liable for LTCG in the older account.
10 Replies
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178054 Points)
Replied 29 May 2023
Though the gift to your mother-in-law would be tax exempt, the original tax liability over your head will be assessed in the hands of your MIL.
Jimmy Anna
(4 Points)
Replied 06 June 2023
Your MIL will be responsible for calculating your original tax burden, even if your gift to her is tax-free.
Rani
(None)
(277 Points)
Replied 04 September 2023
Is gift deed a must if shares are transferred online to spouse/children ? Capital gain (when sold) and dividends will be taxed at the hands of the receiver- Is that correct? For income tax purpose, what all documents should the donor keep?
Thanks in advance,
Rani
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178054 Points)
Replied 01 May 2024
Tax liability will be over the Donor of the shares in case of Spouse and minor child, by the applicability of clubbing of income.
Rani
(None)
(277 Points)
Replied 11 May 2024
Clubbing of income not applicable, if both husband and wifer are tax payers - Is that correct?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178054 Points)
Replied 12 May 2024
No. Tax liability will be over the Donor in case of Spouse, even in case both are tax payer, by virtue of sec. 64(1)(iv) of IT act.
Rani
(None)
(277 Points)
Replied 22 June 2024
If shares /MF units are transferred to adult children and if they sell and incur capital gain/loss, tax implications are with parents or children?
Thanks in advance
Rani
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178054 Points)
Replied 22 June 2024
No clubbing provision in case of Major child.
So, the tax liability in this case will be over children.
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