I was gifted a few stocks on Zerodha.
The LTP was automatically added as the buy price, which is wrong. I was under the assumption I will get 3 days to manually add a buy price, because console was showing the damn option to manually add trades and calculate the price.
Now that I look, you guys have automatically added a LTP which is miles off.
This completely messes up my P&L and now I have to manually sit and calculate for each and every trade because of this braindead decision of adding LTP to gifted stocks.
I do not understand how you can implement such “features” and increase the client’s workload.
When I transfer from one Zerodha account to another Zerodha account, without using your stupid gifting process, and directly doing it through CDSL easiest, will the same feature of you adding LTP still apply, or will I be given a chance to manually update the buy price
It says that LTP is treated as exit price for sender too. Does that mean capital gains for gifting will be shown in the tax P&L for sender, despite the sender not getting anything (Since it is a gift).
I just want to know if Tax P&L of sender is messed up too, or just buyer. Since I have to contact the sender and tell him to manually calculate if that’s the case.
@ShubhS9
Hi @tallerballer
Tax rules are based on the relationship between the parties. Since we cannot determine that, we’ve chosen the most conservative method. While filing income tax, you can change the acquisition price as per your view.
We’ve explained this here: Are there any income tax implications on the gifting of shares?
Having said that, we’re also working on an improved method for tax calculation.
Hi Meher, thanks for the reply. Hope you can help me with this.
I read the article. However, even when the person is not a relative, the cost of acquisition and date are the same right as the previous person right?
Even if he is a stranger, on gifting of shares through Zerodha, he has to pay at slab rates for the entire amount. That does not affect the acquisition cost.
Even if you cannot determine the relationship, how does his acquisition cost become the LTP of when he got the shares into his account? You explicitly mention that the acquisition cost is the same as the previous owner.
I’m transfer from Kite account to another Kite account, through a Zerodha feature itself. You have all the trades, buy price, dates, etc. You can do FIFO, LIFO or whatever algo is there to get the cost of transferred shares. How does the fact that he is not a relative have to do anything with this?