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.
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So . If the client transfer through the easiest or through the DP as you said ; is there any difference as to tax wise or anyother difference ?
The taxation laws don’t change if you use a different method to transfer the securities. However, there can be different ways to account for these transfers as @nithin has explained above.
This article gives a detailed explanation of the tax implication of gifting.
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I am facing another issue. When verifying for final approval on CDSL, after entering OTP and confirming the prompt, the screen revert backs to old and done not show that transfer is approved! I worry coz I approved more than once. No SMs/Email from CSDSL to confirm the off market transaction set finally. Is there something wrong? It is already 8PM in few minutes.
Query
Person X has 100 RIL shares bought on Jan 2018.
Person Y (son of Person X) has shares 50 RIL shares bought on Jun 2021.
Suppose Person X gifted all his shares to Person Y. So that, Person Y has 150 RIL shares in his demat now.
Now, Person Y sold only 50 RIL shares from his demat in Aug 2021.
What will be acquisition price and acquisition time stamp (for calculation of capital gains) on those 50 RIL shares that were sold from Person Y demat account??
Found the cause of error!! Somehow the link was showing ?P instead of ?O. SO I guess the program was depending on query string despite clicking the “Off Market Transfer” and trying to handle “Pledge” request and failing. Opened fresh link and i did not get “Margin pledge set up is not present for input PAN No” warning on entering PAN. After that it worked well and now the link is not valid as the transfer set by Zerodha is already complete! Got debit message already!
One question…Since I gifted shares to wife yesterday and the price is still not updated on her holding list, can I go to use fix discrepancies by entering buy price same as mine buy price? That will be also straight forward to compute STCG or LTCG based of selling date? Will that be good or bad?
The buy averages for gifted shared will be updated from our end and you don’t have to make any entries on Console and it will be entered at the stock’s closing price on the day the transfer of the stocks happens.
I want to gift some stocks but most of them are not in the approved list of securities. For example: AuroLabs, GokulAgro, Manaksteel etc.
80% of the stocks that i hold and want to gift are not approved.
Can i ask what is the criteria and is there a process of getting a stock approved ? I really want to use this service by Zerodha but looks like its a half baked cake.
@nithin
@ShubhS9