Capital gain

dear abhishek,

if you are transferring the shares as gift then such transfer is not considered to be transfer under 47 of the income tax act. as your cost of accuisition was the cost to the previous owner then there is no question of arising of capital gains in your hand.

regards,

ganesh agarwala

As replied by Ganesh is correct. In addition to that make sure that the received is covered under the definition of relatives and value of the transfer will be less than fifty thousands rupees otherwise it will be taxable in the hands of the reciver as income from other source
But if you are transfering for consideration then there will be either STCG/ LTCG and both are taxable in your hand.

Please note even its LTCG even then it will be taxable since you will not pay STT on the same.

dear abhishek,

as mr. yogesh coreectly pointed out, i did a blunder not pointing out the sec 56(2)(vii), where gifts are taxed.... in your case as you have inherited the property from your relative capital gain will not arise in your hand. but the same will be taxed in the hands of your relative to whom you are transferring if she does not come under the ambit of defination of relative to you.

regards

ganesh agarwala