Short term gain
This query is : Resolved
23 February 2017
I have bought 100 shares of RIL @1082 than transfer them to my daughter's account rate was Rs.1130. She than sold them @1180. What abt our sort term tax liabilities?
23 February 2017
Dear Harshkant,
Two possibilities-
1. If you have received the money for the transfer that you made to your daughter- you are required to pay taxes on the gain that you made i.e Rs 48 / share and she has to pay taxes on Rs 50/ share profit made by her.
2. If you treat this transfer as gift- you are not required to pay taxes on the transfer. But your daughter has to pay taxes on the total gain Rs 98/ share.
Notwithstanding the above, please note- if your daughter is still a minor-her gain is also clubbed with your income and you will have to pay taxes thereon. However, flat exemption of Rs 1500/- p.a. is available.
Hope the above clarifies.
Regards,
CA Hariprasad Nayak
+91 9481 227 467
Two possibilities-
1. If you have received the money for the transfer that you made to your daughter- you are required to pay taxes on the gain that you made i.e Rs 48 / share and she has to pay taxes on Rs 50/ share profit made by her.
2. If you treat this transfer as gift- you are not required to pay taxes on the transfer. But your daughter has to pay taxes on the total gain Rs 98/ share.
Notwithstanding the above, please note- if your daughter is still a minor-her gain is also clubbed with your income and you will have to pay taxes thereon. However, flat exemption of Rs 1500/- p.a. is available.
Hope the above clarifies.
Regards,
CA Hariprasad Nayak
+91 9481 227 467
Message likes :
1 times
23 February 2017
Short capital gains taxed @15% difference between Purchase / transfer price and sales price.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- TDS on Purchase of Immovable Property by NRI from NRI
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Capital gain from sale of house property
- Stamp Paper for partnership firm change new income tax 2025
- SFT Cash Deposit in Current Account
- Value of property in capital gain
- When TDS on GST applied
- TDS APPLICABILITY......
- Copyright software
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
