Shares transferred or selling benefit in it act

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This query is : Resolved

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When considering shares held for over a year, transferring them to your son is generally treated as a gift and is exempt from tax under the Income Tax Act, 1961. However, if you decide to sell these shares, you will be liable to pay a 10% long-term capital gains tax.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)

08 April 2022 Sir,
It assessee purchase of some shares previous last 7 years .if assessess shares transferred to son or sales of shares benefit in it act.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 April 2022 Transferred to son considered as gift no tax payable.
In case of sale 10% long term capital gains tax payable in case holding more than one year.

CA Puja Sharma

CA Puja Sharma (Expert)

08 April 2022 There will be long-term capital gain since the shares are held for more than a year.
When you will transfer the shares to your son there won't be any capital gain because this type of transfer is exempted under the Income Tax Act, 1961

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