Difference between "Gift to Relative" and "Transfer between Specified Family Members" Shares in Dema

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Dear Sir,

I plan to transfer certain shares from my Demat account to my brother's daughter's demat account ONLINE.

For transfer shares in off-market mode, I have to disclose reasons for transfer, under which I found two options: "Gift" and "Transfer between specified Family members".

Request experts to please enlighten me the difference between "Gift" and transfer between specified family members" please?

What are the income tax implications on "Gifting to Relative" and "Transferring to Specified Family Member"?

 

Regards,

Online off-Market transfer to relative - Found 2 options - "Gift" & "Trnfr btwn specified Family Members"

Read more at: https://www.caclubindia.com/forum/online-off-market-transfer-to-relative-found-2-options-quot-gift-quot-amp-quot-trnfr-btwn-specified-family-mem-588221.asp
Online off-Market transfer to relative - Found 2 options - "Gift" & "Trnfr btwn specified Family Members"

Read more at: https://www.caclubindia.com/forum/online-off-market-transfer-to-relative-found-2-options-quot-gift-quot-amp-quot-trnfr-btwn-specified-family-mem-588221.asp
Replies (1)

1. When you gift it to your niece, you will not receive any payment, as such no tax liability over you, at the same time you being her relative, she will not have to pay any tax as gift from relative.

Only when she sells the share, she will pay capital gains tax based on your COA.

2. When to sell/or transfer it to her, you have to calculate capital gain based on transfer price/ FMV, whichever higher, and pay tax over it.


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