Gift Tax

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J Kishore Kumar (Querist)
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02 December 2009 Hi,
If father who is holding shares in his demat account for more that one year transfers the shares as a gift to his children account(will it attract gift tax) and if children sell the shares immediately from their demat account will it attract any kind of capital gains tax.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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13 March 2012 Gift by a person to his children is exempt u/s 47.

Sale of shares by the children attracts capital gain tax.

For this purpose, the period of holding shall include the period for which the shares were held by the father.

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