My Father was holding the shares around xx Lakhs. Most of them were physical shares converted in to the demat. I was the nominee of his demat account so the shares transferred to my account recently. Most of them are very high dividend giving shares like vedanta. So, I want to transfer it to My mom’s account. So now question is that if I gift this shares to my mother, Will I have to pay capital gain tax? If yes, It will be counted from Jan 2018 price?
inheritance and direct family gifting is tax free
shares received as gift will attract capital gains only when the receiver sells it and yes, the price of the shares will be taken as of on 31st Jan 2018
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Hey @ravisdfc2,
If you are gifting shares to your mom, you won’t have to pay any taxes. Moreover, as your mom is a relative, she wouldn’t have to pay taxes either at the time of receiving the shares as a gift.
However, when your mom decides to sell these shares, capital gains tax will be applicable. The cost of acquisition and date of purchase will be taken from the time these shares were originally purchased by your dad. If these were purchased before Jan 2018, grandfathering will be applicable, and the COA will be determined based on the grandfathering clause.
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