Hi,
If a son receives shares as a gift from father (direct blood relation) and sells them at a later date how should the capital gains tax be computed?
For eg, If the son receives 1000 LIQUIDBEES/LIQUIDETFs as a gift from the father then when the son sells those shares will he have to pay any capital gain tax on them?
Also what about shares other than LIQUID funds? How should one think about the acquisition price ?
Thank you in advance.
Only in the case of LiquidBees there is no CG because most likely acquisition price and sell price is same (due to pricing nature of LB). The dividend paid out is taxable in the hands of the recipient of the dividend.
In other cases like ETFs, Shares etc where price has appreciated, there is CG.
read here
[Is there any income tax implications on gifting of shares? (zerodha.com)](Is there any income tax implications on gifting of shares?
If a son receives shares as a gift from his father, then the capital gains shall be taxed in the hands of the son. Here’s a read on Tax on Gifted Shares & Securities - Learn by Quicko for your better understanding of tax computation.
Liquidbees/LiquidETFs are exchange-traded funds (ETFs) that trade just like a share. Hence, the taxation shall be the same as for ETF’s. ETF - Tax on ETF (Exchange Traded Funds) in India - Learn by Quicko
For shares other than Liquid funds, the acquisition price shall be taken into consideration in the same way as discussed in the above read on tax on gifted shares & securities.
Hope this helps.