Rules regarding taxation of gift


1.If one gifts his entire equity stock portfolio to her spouse's demat account  ( demat a/c jointly held by spouse and the individual) by transferring , what are the Income Tax implications,  if any ,for the concerned individual and the spouse ?

2. If any person receives equity shares from his grandmother (91 year old) as a gift ,  by transferring during the demaerialisation process , is there any tax implication for that person ?

 
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Lawyer in Hyderabad.Email:ramachary64@gmail.com

If aggregate amount of sum of money or property (immovable property like land or building or both, shares and securities, jewellery, archaeological collection, drawings, paintings, sculptures or any work of art or bullion) received by an individual/HUF without any consideration from one or more persons during a financial year not exceeds Rs.50,000, then it is not taxable income.

 
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Dear Sir,

1. In case of husband giving gift of equity shares to Wife, the whole gift in the hands of the wife would be exempt from Income Tax. However, the disclosure of such gift received must be duly made while filing of Income tax return.

2. In case of a person receiving shares from his grandmother in the form of gift, such gift in the hands of such person receiving the gift would be exempt from Income Tax. However, the disclosure of such gift received must be duly made while filing of Income tax return.

Please note for the sake of clarity that gift must be made during the life of the donor and donee. This clarification is given as the age of the grandmother is mentioned.

A reference may be made to Section 56(2)(VII) of the Income Tax Act, 1961 for law relating to property received without any consideration (Gift).

Hope this helps.

 

 
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