Tax Treatment of gift of shares and etf

Taxation
1

If shares and etfs are gifted to relative does it require to report it in ITR under “Exempt Income u/s 10 of the Income Tax Act” because this is not an income for the receiver so how come it becomes an exempt income. Also in except income section there is no such category to show gift as exempt income.

Also is there any mandatory holding period for the receiver before selling the gifted securities @Quicko

1 Like
2

Hello @rkpgbbs

If shares or any other assets are transferred to a relative, such a transfer is treated as exempt under the Income Tax Act of India. This must be reported in the Income Tax Return under Schedule Exempt Income, specifically in the section for Other Exempt Income.