Capital gains

Gift is not covered under proviosions of sec 47, therefore accoding to S 2(47) its a transfer

"(2) Where the [specified securities] are transferred or converted (otherwise than by transfer) into money at any time within a period of three years from the date of their acquisition, the amount of capital gain arising from the transfer of the original asset not charged under section 45 on the basis of the cost of such [specified securities] as provided in clause (a) or clause (b) of sub-section (1) shall be deemed to be the income chargeable under the head “Capital gains” relating to long-term capital assets of the previous year in which the  specified securities] are transferred or converted (otherwise than by transfer)  into money."

Therefore Cap gain will arise

  Lets see what others say.