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demat a/c

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Querist : Anonymous

Querist : Anonymous (Querist)

29 November 2010 in my family there r 4 demat a/cs -(1 of my mother,1 of my father,1 of my grans ma, 1 of me) .of the above i have to mtain only 1 a/c(either my mother /father/my).others i have to close b/c of amc or other mtance. problemsi have no earning as such but my father/mother/grandma has taxable income.wht strategy should i adopt so tht it becomes tax free?

grandmother's shares----(as a gift to me or my father) since relative(as per income tax act in sec 56(2)(vii)).

mother's shares -----to me

fathers share --to me

whether any clubbing provisions apply since i am major son & there r no clubbing provisions regarding major son in the act?

but if my father transfer to my mother there wil be clubbing provision.

consisdering all permutation &combination give me the best advice.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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30 November 2010 You have rightly considered all the provisions related with clubbing and gifts.
If your parents and Grand Mother have no objection then you can transfer these shares in your Demat A/c as an off market transaction. It will be better if you prepare Gift Deeds also, describing Particulars like the Co Name, Qty, their Purchase Date and Amount etc of shares transferred in your Demat.

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