Shareholder in an unlisted company gifted his shares to his son. Within a year, the son sold the shares at profit.
1. The first transfer of shares from father to son without consideration being a gift to a relative, should be exempt from Income Tax. Whether this is correct?
2. Whether period of holding of the shares by the son will be considered to be from the date he received the gift or from the date his father held them? Also, what will be cost of the shares to the son for calculation of capital gains?
Thanks in advance.
CAclubindia
