I have 5 lakh worth of liquid-bees {500 quantity } i want to transfer this to my uncle account via easi/easiest
I’m in 10 percentage tax slab and he is in 30 percentage tax slab
what will be the tax implementations on this and as well as tax will be for capital gains only ?
Kindly give me an elaborated answer
Thank you .
Anybody out there to help me on this
Elaborate on relation of “uncle” (what lineal descendent if any) and specify the nature of “transfer”.
He is my Dad’s younger brother
I have borrowed from him to repay i’m willing to transfer my worth of five lakhs- Equity
script is Liquid bees which is debt instrument
CDSL to CDSL demat transfer
in CDSL there is “Transfer b/w specified Family member” option but generally ppl use Gift to family member.
Either way, transfer to this relative is exempt from GIFT Tax even if you gifted. But if you are able to show how you borrowed, then you can show this as return of loan and principal isn’t taxed. (by show, it means if there is inquiry/notice, you can prove that’s all)
LB pay outs are actually dividends (even though not cash but units) and they deduct TDS, so whatever income in FY is generated by the holder, that amount in cash terms should be added to individual’s income and if there is tax liability, should compute accordingly.
in this thread, i posted on taxation.
Thank you so much for the detailed answer and the link provided