Gift of the shares
This query is : Resolved
10 August 2016
Suppose A(Father Brother) give 100 shares of Rs. 1 per share to B(Brother son) in 2012 and get back in 2013 at Rs. 2 from B (Brother son). when A(Father Brother) gives shares and get back from B(Brother son) gift deed is not executed both times. in this one period (2012 to 2013) B(Brother son) plays several time online trading of equity shares like intraday, delivery basis but not maintain a record. What is the tax liability on A(Father Brother) and B (Brother son).
Amol S Joglekar
(Expert)
10 August 2016
you are mixing too many things together.....
01. GIFT is NOT to be taken back...if it is taken back, it is no more a gift....so when A father brother transfers shares to B brother son, capital gain tax needs to be computed.
02. Same holds good when B brother son transfers shares to A father son.... The capital gain needs to be computed.
03. For trading in shares, the profit /loss to be computed and accordingly taxed.
01. GIFT is NOT to be taken back...if it is taken back, it is no more a gift....so when A father brother transfers shares to B brother son, capital gain tax needs to be computed.
02. Same holds good when B brother son transfers shares to A father son.... The capital gain needs to be computed.
03. For trading in shares, the profit /loss to be computed and accordingly taxed.
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