Off Market Credit

I have received shares as off market transaction as my mother expired. This is reflected in my AIS. As this has to be reflected in my exempted income, I wanted to know that the value of shares should be the original cost price or the value on the particular date of transfer. The AIS would show the current date value.

Also the flat was also in her name, and got transferred in my name, how do i show the property in my name in the ITR, and the value would be the market value or the cost price of the flat.

Thanks

 

     

Replies (3)
Quick Summary
This discussion clarifies the tax treatment of assets received as inheritance, specifically shares transferred off-market and property inherited from a deceased mother. The consensus is that inherited assets are generally not taxable upon receipt. When declaring inherited shares in your Income Tax Return (ITR), the relevant value for capital gains purposes upon sale is the original cost price. Similarly, for inherited property, the cost price is used for ITR declaration, not the current market value, unless specific conditions like Schedule AL apply.

1. Original cost.

2. No need to declare it in ITR, unless in schedule AL.      Again at Cost Price.

If I understand correctly, consequent to your mother's passing, you only received the shares in an off market transaction as an inheritance. If you haven't subsequently sold them why are you showing this as exempted income? Or have you sold them subsequently?

The Income Tax Act, 1961, specifically excludes the transfer of assets under will or inheritance from the purview of gift tax. Accordingly, the law does not provide for taxation of property received by way of inheritance.

Sir, I have sold few of the shares, that I would show it as sold in my capital gains part. As far I understand I don’t need to show in the exempted income. Thanks 

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