LTCG after Gifting shares or mutual funds

Though the gift to your mother-in-law would be tax exempt, the original tax liability over your head will be assessed in the hands of your MIL.

Your MIL will be responsible for calculating your original tax burden, even if your gift to her is tax-free.

Is gift deed a  must if shares are transferred online to spouse/children ? Capital gain  (when sold) and dividends will be taxed at the hands of the receiver- Is that correct?  For income tax purpose, what all documents should the donor keep?

Thanks in advance,

Rani

Tax liability will be over the Donor of the shares in case of Spouse and minor child, by the applicability of clubbing of income.

Clubbing of income not applicable, if both husband and wifer are tax payers - Is that correct? 

No. Tax liability will be over the Donor in case of Spouse, even in case both are tax payer, by virtue of sec. 64(1)(iv) of IT act.

If shares /MF units are transferred to adult children and if they sell and incur capital gain/loss, tax implications are with parents or children?

Thanks in advance

Rani

No clubbing provision in case of Major child.

So, the tax liability in this case will be over children.

Thank you very much Sir.

You are welcome.