Mr Raj(father) has equity share of Rs 50 Lacs and on death of Raj
His shares are transferred to Diya(daughter) and in F.Y 2018-19 she has sold such shares
The amt received on above shares is divided between diya and diya's sister Seema of Rs 25 Lacs each by making gift deed
So my query was whether such amt would be taxable or not in the hands of Seema and where would it be reflected in ITR-2
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I have a doubt regarding gift income u/s 56(2)
Replies (11)
I think, not taxable, or exempt u/s. 56(2) of IT act.
It may be declared under schedule 'Exempted Income.
exempt
Under which head I have to shown in itr-2
Gift received from relatives (here in the case parent) exempt from tax. I Show in exempted income.
Sir what is tax treatment in hands of diya as shares are sold by her
Sir what is tax treatment in hands of diya as shares are sold by her
In diya's hand there will be capital gain and cost will be cost of previous owner.Refer sec 49
1. Any property received from a relative will not be subject to tax and at the time of sale of such shares it will be chargeable to tax accordingly
2. According to sec 56(2), it will not be chargeable to tax in the hands of the transferor. However, on sale of such property, the resultant gain or loss will be chargeable to Long term or short term capital gains considering the holding including the holding period of the previous owner.
3. Hence, in the above case, shares sold will be taxable in the hands of Diya and as well as sister Seema.
Please correct me if the above solution has an alternative view.
What is the tax implication on diya's part if the shares were inherited by diya from her father without any gift deed..
Still exempt since it is received by inherited as per sec 56(2)(vii)
good clarification and information
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