Transfer of inherited shares to brother and sister

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 November 2016 Dear Sirs,

My father was holding shares in DMat A/c in which I was a second holder. My father has expired. I had submitted my fathers death certificate to the DP and the shares / Dmat A/c have been transferred in my name thru transmission process. As these shared were of my father, I want to divide / transfer the shares to my brother and sister, for which I was advised to transfer them to their DMat A/c under off-market trade.

I would like to know will this transfer be treated as my sale of shares, and if yes, will I have to show this sale as my income and pay income tax on it ?

Please advice the suitable process of dividing / transferring these inherited shares from my father between my brother and sister.

thanking you in advance

CA. Vinodh Kothari

CA. Vinodh Kothari (Expert)
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28 November 2016 Legacy received from father is not taxable.

In your case you have transferred the shares belonging to your father to your brother and sister this transfer is not a sale and you don't need to pay any income tax on it.

VK

Tehmton

Tehmton (Querist)
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29 April 2017 Thanks sir,