Prabeer (B. COM (H) CA & CS Final) (5484 Points)
22 November 2008MR. 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?
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
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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