My Late Father was holding Debt MFs with Zerodha.
He had below nominees to his account
Myself (25%)
Brother (25%)
Mother (50%)
As per Zerodha, these MFs will be distributed and transferred in all these 3 accounts accordingly.
Now,
Me and my brother want to transfer them ( our 25% + 25% stake) to our Mother’s account.
Query -
We would like to know if this will attract any IT taxation on any one of us.
If any gift or amount is received from a relative is entirely exempt from tax in the hands of the recipient. Further, the capital gain tax will be applicable at the time of selling the shares by the recipient and exempt in the hands of the transferor.
You can refer to this article from Quicko.
My condolences for your loss.
One question, do mutual fund or demat account allow multiple nomination and allow percentage allocation. In my experience, most of them allow only one person as nominee and never seen multiple record of nominee or is it the WILL that your late father wrote allocating his share of wealth.
Apologies if this is invading your privacy.
In Zerodha, there is a provision to add multiple Nominees with percent share for each.
This nomination will be applicable for all the holdings that are there in the demat account with Zerodha.