Capital gain

I received shares as a nominee from my deceased relative. Now i am transferring the same shares offline to the same deceased relative say his daughter i.e transferring offline means there is no STT involved in it. Now i want to know the capital gain implication for the above transaction. Whether capital gain will arise or not, if yes in whose hand and what will be the cost of acquisition.

Replies (3)

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

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details