Gift of very old shares

334 views 1 replies

my father had purchased shares in physical format in 1991,(ie purchased without STT) since then he has not sold any share,those shares have now been converted to demat.

now he wants to gift a substatial amount of shares to me,so the query is

1.what will be the tax liabiluty on my father on gifting to me

2.what is the purchase price for me and sale price for my father of the shares

3.now if i sell these gifted shares of my father after 1 year from the date of gift ,what will be the tax liability on me and my father?

4.does the assesing officer have any right to query on these shares as the amount is substantial?

Replies (1)

Point wise reply

1.what will be the tax liabiluty on my father on gifting to me

No Tax Liability as it is gift from close relative

2.what is the purchase price for me and sale price for my father of the shares

Your purchase price is deemed to be the same as purchase price of your father. No sale price for father as it is a gift

3.now if i sell these gifted shares of my father after 1 year from the date of gift ,what will be the tax liability on me and my father?

Tax liabilty on you will be as follows

If you sell these thru Recog Stock exchange, after paying STT, tax liability is NIL

Else tax liability will be 20% of Capital gain after indexing or 10% of capital gain without indexing which ever is lower. Indexing means adjustng the cost of purchase to the notified indexfor determining present value of historical cost. Eg Rs. 100 purcased in 1990-91 will be recoked as 1120/182 * 100 = 615.38

No tax liability for your father as he s not owner of shares any more.

Please note that you dont have to wait one year before selling these shares as the period of holding of your father will be recokoned for you also

4.does the assesing officer have any right to query on these shares as the amount is substantial?

Query not clear. Better to dislcose the exempt income in your ITR

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
06 July 2026
C.A./CA Inter OR pursuing C.A./GST/Accounts/Audit/IT - Head

Arvindkumar Maniar & Co.

Rajkot

CA

View Details
Company
06 July 2026
Chartered Accountant (Indirect Taxation)

Gowra Ventures Pvt Ltd

Hyderabad

CA

View Details
Company
29 June 2026
ACCOUNTANT

SANDEEP AASHISH & CO

Araria

B.Com

View Details
Company
20 June 2026
Assistant Accounts Manager

Fintax Professionals

Gurgaon

CA Inter

View Details
Company
24 June 2026
Senior Account (VA Client Operations)

Karbon Business

Bengaluru

CA Inter

View Details
Company
ARTICLESHIP 11 July 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 28 June 2026
Article Assistant

Sharma Chetan And Company

Gurgaon

CA Inter

View Details
Company
24 June 2026
Chartered Accountant

CA Darshita Shah & Co

Nadiad

CA

View Details