I have gifted 27 stocks to my wife account .
But in the p&L statement it is showing as if I have sold it .
does this means I sold ? kindly reply becoz it will have serious tax implications !!!
We consider it sold only for P&L purposes. If you have gifted to your wife there is no tax implications on this.
@nithin Thanks for kind reply …
even i read it …
But one / two transactions it is fine i can write it somewhere … I am planning to do multiple gift transactions so it becomes difficult to remember all the transaction buying price .
( as I am already in 30% tax bracket I am planning to move my entire stocks to my wifes account )
what do you suggest ?
shall I use CDSL easiest to transfer ?
We are working on showing all gift transactions on the taxation P&L on a separate page. @Nakul can update here once it is ready.
But yeah, if you are transferring this for some tax planning purposes, maybe send across a DIS slip to our office (we don’t support easiest).
How to transfer shares from a Zerodha demat account to another demat account offline?.
Hi Nithin,
Sender buys share at X rupees. On the gifting day the share price is X+Y. The receiver of the gift receives the gift at X rupees or X+Y rupees ?
If it is X+Y(gifting day closing price), then what about the profit of Y rupees that sender would have got if it was actually sold?
There are different ways to account for this. For P&L purposes, we consider at X+Y the stock was sold, and X+Y is the acquisition price for the person who received the gift.
The other way to do it is that the person receiving the gift says that the acquisition price is X and whenever the stock is sold pays taxes on selling price - X. When you gift within your immediate family, the gift is non-taxable event.
Father has X script at 126 Buy average. On the day of gifting the share to son price is 156. So now if the sons buy average after the gift is received is 156 then where is the profit of share from 126 to 156 ? Will it be added to the funds of Father ?
The fathers P&L will show buy 126 and sell 156 (gifted trade). So the profit will show up in fathers account.
But like I said earlier, this is for our P&L purpose. For taxation purpose you can show acquisition price as 126 if the gift is from father. Whenever the son sells, tax can be paid by the son based on acquisition price as 126.
But the sons account shows buy price as 156 in Zerodha so how can we calculate profit considering buy price as 126 ?
Also the Fathers account does not have any funds credited as per 126 buy and 156 sell
But the sons account shows buy price as 156 in Zerodha so how can we calculate profit considering buy price as 126 ?
Also the Fathers account does not have any funds credited as per 126 buy and 156 sell is this an issue ?
While filing your income tax returns, you can make the changes in the P&L to whatever you want.
@nithin
My question is the profit of price movement from 126 to 156 is neither in Fathers account(Funds) and nor in sons account(as the son has a new buy average of 156). Then where has this profit gone ? Are you saying the Father should be receiving this profit in form of credit in his funds ?
But sir the link you have shared of Zerodha support clearly states that you do support CDSL Easiest.
Which link?
If the son sells the share at 156 and says his cost of acquisition is 126, the son pays tax and the father doesn’t have to.
If the son sells the share at 156 and says his cost of acquisition is 156, the son doesn’t have to pay any tax. But in this case, the father has to file income tax returns saying he bought a share at 126 and gifted a share worth Rs 156, so there is capital gains or tax to be paid on the gain.
Sir the following page clearly states that Zerodha does support CDSL Easiest, which is contrary to your statement that Zerodha doesn’t.
Ah my bad. I forgot that we started this post the new pledge/repledge mechanism started a couple of months back.
Hey yeah, you can use easiest. We have started the easiest process a couple of months back.
@nithin Some of mutual funds and shares are not in the list of zerodha’s gifting list, Can I use the cdsl easiest off market transfer and select reason as ‘Gift’ in that ? Will the same taxation rules apply
Ex: Recently alloted zomato shares are not available to gift using zerodha’s gift process.
Also just curious, does zerodha’s gifting mechanism use the exact cdsl easiest process of off transfer and use reason as gift.
We’ll be allowing mutual funds gifting soon on Console. For now, you can use easiest to gift MFs. You can read this article to understand the tax implication.
We’ll have this added by the end of this month. We use the exchange approved list of securities for gifting as well, except MF and a few other fixed-income securities for now.
Easiest is the facility made available to clients holding their demat with CDSL. The depository participants have another facility to enable off market transfers. We do select the reason as gift.
1 Like