Short term gain
This query is : Resolved
Harshkant Sonaiya
(Querist)
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?
CA Hariprasad Nayak
(Expert)
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 :
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KAVIRAJA ADDANGADI
(Expert)
23 February 2017
Short capital gains taxed @15% difference between Purchase / transfer price and sales price.
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