I am a mother, wishing to gift my only son stocks in my zerodha demat account.
I and my son, we both have Active Zerodha demat accounts.
I have read zerodha and quicko article about gifting and taxation.
It says I, the Sender of gift stocks will not be liable for any income tax implications.
My doubt :
My son will get the stocks from me, value well above Rs. 50,000/- Will my son, as recipient, be liable to pay income tax on that gift? What will be income tax implications for my son?
I REQUEST you to reply to my query as soon as possible.
Solving this doubt, coming from reliable source like you is very important to us.
Will my son have to show stocks transfer as income while filling ITR?
He will not have to pay ANY type of tax, say Capital Gains tax or show it as normal Income from other sources?
I also have some mutual funds in zerodha.
As far as I am updated in today’s world, MFs cannot be gifted or transferred, right?
They can only be redeemed.
Am I right to understand this or is there any way I can also transfer MFs to my son?
Appreciate your response.
Thank you.
Yours sincerely.
can such transferred mutual funds be redeemed at zerodha coin? I made mutual fund transfer from motilal to groww and groww doesn’t allow redemption of transferred mutual funds.
Shares and securities received from a relative are exempt from income since a gift from a relative is exempt. As the relation is that of a mother and son, no tax will be imposed on the receiver of the gift while receiving the shares even if the amount exceeds Rs. 50,000. However, your son will have to report the income as exempt income under “income from other sources”.
Further, when your son wishes to sell such shares, the income will be considered as capital gain and tax will be levied on the same.
It may not be mandatory to register a gift deed in this scenario (movable property) but, it is advisable to maintain proper records and documentation of the gift transaction, including a written gift deed. This can help clarify the transfer and intent.
The gift deed should be written on the stamp paper and registered at the Registrar or Sub-Registrar’s office in the area where the person giving the gift lives.
All above messages talks about in which case tax is applicable especially when Father gifts shares to son or daughters. Can you please explain who pays the capital gain tax after son or daughter sell the gifted shares? Is it Donor or Receiver who should pay the capital gain tax?
The receiver of the shares needs to pay the taxes. Only in case of shares gifted to a minor child or wife, clubbing of income is applicable and the sender needs to pay the taxes.
@Quicko@tallerballer@Jason_Castelino
Highly disappointed with Quicko’s service. After spending time in tradingqna platform and going through your (@Quicko ) clarifications, I was convinced you guys know what you are doing. However, my experience has now turned bitter. So, I opted the FnO plan for meet with PRO, to my surprise, during the call , the CA assigned barely knew the intricacies of FnO, and was asking clarifications to me. CA was not sure what options expiry was, and the calculation of turnover and related things. CA did not understand the taxation of bonds invested through Wint Wealth. I pay a good sum to quicko and take your service so that I can get my doubts cleared after my weeks of research,instead I had to be on my toes and end up having none of the doubts cleared all along wasting money. I wonder what happens if a person blindly trusts the CA, and does not know his/her tax situation. I suppose this could be due to non stringent policies for CAs to partner with you. I mean, for god’s sake, if I choose an FnO filing plan, least I expect is to get someone familiar with FnO. Plus, CA asked not to mention the gift shared received from relative contrary to @Quicko 's reply in this thread.
