Tax Implications on Gifting of Shares

Poojitha Raam Vinay | Last updated: 03 March 2022

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Gifting shares can be a thoughtful gesture, but it's important to understand the tax implications. Generally, the person gifting shares (the doner) won't face capital gains tax as gifts are excluded from the definition of 'transfer' for tax purposes. However, the receiver (the donee) may have tax liabilities depending on the value of the shares and their relationship to the giver.

The word transfer means a delivery of property, especially stocks and shares, from one person to another. Transfer of Shares may be by way of Sale, Mortgage, Pledge, Gift, Death, Succession, Inheritance, Bankruptcy. What is a Gift? Gift means any sum of money, Moveable property or immovable

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1 Year PLAN

1999

(Excl. of GST ₹359)

BEST VALUE

2 Years PLAN

3499

(Excl. of GST ₹629)

3 Months PLAN

999

(Excl. of GST ₹179)

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About the Author

Poojitha Raam Vinay

Practice

I simplify complex income tax, TDS, banking, and investment updates into practical insights for taxpayers, salaried professionals, pensioners, and senior citizens. I regularly write on ITR filing, tax compliance, savings schemes, and the latest financial rule changes in India.

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