MR. X RETIRES FROM EMPLOYMENT RECEIVED Rs. 5,00,000 AS GRATUITY (AFTER TAX LIABILITY), PROVIDES Rs. 2,00,000 TO ELDER SON MR. Y OUT OF Rs. 5,00,000. MR. Y INVESTS THE AMOUNT IN SHARES AND THERE IS A PROFIT OF Rs. 50,000. IN WHOSE HANDS Rs. 50,000 WILL BE TAXABLE?
4 Replies
CA Gopal Heda
(CS FINAL )
(181 Points)
Replied 22 November 2008
| Originally posted by :PRABEER SARKAR | ||
| " | MR. X RETIRES FROM EMPLOYMENT RECEIVED Rs. 5,00,000 AS GRATUITY (AFTER TAX LIABILITY), PROVIDES Rs. 2,00,000 TO ELDER SON MR. Y OUT OF Rs. 5,00,000. MR. Y INVESTS THE AMOUNT IN SHARES AND THERE IS A PROFIT OF Rs. 50,000. IN WHOSE HANDS Rs. 50,000 WILL BE TAXABLE? | " |
madhur gupta
(student/article )
(1022 Points)
Replied 22 November 2008
since mr.y is elder n mr x has gifted rs200000 to him out of his capital
clubbing provisions will not b applicable here n it rs.50000 will be income of son only
(elder here assumed is major)
Jeet Biswas
(ACMA (in Service))
(5073 Points)
Replied 22 November 2008
if its LTCG, then thr is no tax liability. only STT will be paid.
if its STCG, then Mr. Y will have to pay tax. Assuming that he has attained the age of majority.
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