Why Zerodha shows capital gain for the shares gifted in gifter's account?

Taxation
1

When we are gifting shares, tax liability is only for those who are receiving the shares. But zerodha still calculate capital gain based on the share price on the date of transfer as sell price on the report of the person who gifted shares.

It is confusing and give extra burden to find actual tax liability for both gifter and the one who accepted gifts.

Cant zerodha implement the tax P&L generation based on the actual tax implications?

Like Omitting the tax for the shares gifted from P&L in gifters side and calculating tax based on the purchase price and date of purchase on the one who accepted gift.

Isnt it possible to implement as both person doing gift transaction using zerodha gifting shares option?

2

@TheGouda @Ruchi_Porwal

3

While the sender may not have a tax obligation, the receiver does, based on the value of the gift received or the nature of the relationship with the sender. Read more. However, it’s very difficult to cover all cases, hence to keep it conservative, we’re closing and opening entries with closing prices for both sender and receiver.

Improving the gift flow, along with the Tax report, is on our to-do list; we’ll try to accommodate these sooner.

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