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How to treat shares & MF received as gift

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Abhishek

NIL

108 Points Posted on 30 November 2021

Hello, Recently one of my friend has received some share and MF units in his demat account directly from his uncle (not in blood relation) worth around Rs.70,000/- now how to treat the same as he has got both mutual funds and shares in his demat account and amount is also more then Rs. 50,000/-. How to show the same and is there any tax to be paid by him or anything he should keep so that he did not get any problem in future.

And he have also got some ETF from the broker as an token of gift worth Rs. 500/- when he open the account so how to show all this.

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Quick Summary

This discussion addresses how to handle shares and mutual fund units received as a gift, particularly when the value exceeds £50,000. It clarifies that such gifts must be declared under 'Income from Other Sources' and are taxable at your individual slab rate. Unfortunately, no rebate is available for gifts exceeding £50,000, meaning the full amount will be considered part of your income.