I have received stock market shares as gift from my grandfather as off market transaction in my share trading depository account. Does this needs to be reported in ITR, if yes how & which section or schedule of ITR this needs to be disclosed.
Vijaykumar Chandrasekaran (43 Points)
29 July 2020I have received stock market shares as gift from my grandfather as off market transaction in my share trading depository account. Does this needs to be reported in ITR, if yes how & which section or schedule of ITR this needs to be disclosed.
Venkatramana Shastry C
(Student CA Final )
(90 Points)
Replied 31 July 2020
Yes,you need to show this in your ITR. Since you have received it from your grandfather (a lineal ascendant), it is not taxable and thereby exempt in the hands of recipient (i.e.. you) u/s 56(2)(x). So you can show such gift under the schedule of EXEMPT INCOME and show the total actual cost of acquisition incurred by your grandfather or the F.M.V of the shares received as on 31/01/2018 whichever is higher (because now LTCG tax applicable on sale of shares as and when sold by you)
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