Selling shares received as transfer & tax liability

Tax queries 303 views 1 replies

Respected Sir/Madam,

My father transferred some of his shares of a few companies on my name. I  have a demat account as a primary holder and I hold shares of a few companies in my account. I have been holding those shares for more than 3 years now.

Say for example the valuation of those shares is currently 3 Lacs. Now if I sell those shares, I get say  around 3 lacs (excluding say brokerage etc).

What I need to understand is..

1.      Is the amount of 3 Lacs taxable under capital gains?

2.      If yes, what should be considered as the purchase price of those shares? I never spent any money from my pocket in purchase and now it’s not possible for me to even know the purchase price of those shares.

Thanks and regards,

Rajesh

Replies (1)

1. Not full amount, but only LTCG...... which might be nil in your case.

2. Here Cost of aquisition is the price at which your father might have purchased the share, but because of GrandFathering, you can take the value as on 31.01.2018.

3. If the sale price is more than the GF price you gain, but if less no loss to be counted.

4. Upto 1 lakh LTCG is tax-exempt, your liability for tax (at 10% of gain) arises only over that 1 lakh.......... So, Enjoy....


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