Transfer of inherited shares to brother and sister
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
28 November 2016
Dear Sirs,
My father was holding shares in DMat A/c in which I was a second holder. My father has expired. I had submitted my fathers death certificate to the DP and the shares / Dmat A/c have been transferred in my name thru transmission process. As these shared were of my father, I want to divide / transfer the shares to my brother and sister, for which I was advised to transfer them to their DMat A/c under off-market trade.
I would like to know will this transfer be treated as my sale of shares, and if yes, will I have to show this sale as my income and pay income tax on it ?
Please advice the suitable process of dividing / transferring these inherited shares from my father between my brother and sister.
thanking you in advance
My father was holding shares in DMat A/c in which I was a second holder. My father has expired. I had submitted my fathers death certificate to the DP and the shares / Dmat A/c have been transferred in my name thru transmission process. As these shared were of my father, I want to divide / transfer the shares to my brother and sister, for which I was advised to transfer them to their DMat A/c under off-market trade.
I would like to know will this transfer be treated as my sale of shares, and if yes, will I have to show this sale as my income and pay income tax on it ?
Please advice the suitable process of dividing / transferring these inherited shares from my father between my brother and sister.
thanking you in advance
CA. Vinodh Kothari
(Expert)
28 November 2016
Legacy received from father is not taxable.
In your case you have transferred the shares belonging to your father to your brother and sister this transfer is not a sale and you don't need to pay any income tax on it.
VK
In your case you have transferred the shares belonging to your father to your brother and sister this transfer is not a sale and you don't need to pay any income tax on it.
VK
Dhirajlal Rambhia
(Expert)
20 November 2021
Prepare settlement deed & transfer the shares offline, with stamp duty paid.
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