ONE OF MYS CLIENT SOLD 500 SHARES THIS YEAR AUGUST 2018, BUT SHARES PURCHASED YEAR 1997 NOW MY DOUBT IS THERE IS NO LONG CAPITAL GAIN LIABILITY TO HIM. AND HE WANTS TRANSFER WHOLE AMOUNT TO HIS SON TO PURCHASE A NEW PLOT IN BANGALORE. SO CAN TRANSFER ENTIRE AMOUNT HIS SON ?
18 February 2019
long term capital gain shall be arised considering section 112A where cost of acquisition shall be computed considering share value as on 31.01.2018 and long term capital gain shall be charged at 10% in excess of Rs. 1 lac. Benefit of basic exemption also shall be available. Further your client can give gift to his son any amount and it shall not be chargeable in his hands. Proper documentation should create to clarify AO in case of any need arise in future.
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