Mr.X transferred share to Mr.B is a son of Mr.X(not through Recognised Stock exchange) , consequently Mr.B transfer the share to his friend .....is Mr.A liable to Capital gain tax?
No capital gain to Mr X will not be attracted because mr B is a son of Mr X ...the property has been transferred as a gift to Mr B.and gift received from relatives is exempt from tax
@ harshali, I don't think so....by virtue of section 56(2)(x) Mr.X need not to pay Capital gain tax... because of both comes under relative... however sec 56(2)(x)Mr.B also (recipient) not require to pay tax....when Mr.B had transfer the property to his friend for consideration,then Mr.B has to pay tax upon period of holding....
CAclubindia
