Hello All ,
My father maintained my sisters Income Tax file with CA before marriage , He had invested around 1 LAKH in multiple scrips, now after marriage gave the file to in laws to continue for taxation purposes , now with time my father passed away and shares are valued now at 5 Lakhs , in laws keeps telling me to sell those shares and release cash in file , i have no idea what to say them , in this case What should i do , they don't know anything about share market ...and i don't know why the want to increase cash in hand in files by selling shares .
1) Can i open trading account in sisters name and sell those shares , either they can or i can they will get credit amount of 5L in books recorded and i can get 5L as cash from her In-laws
2 ) Not clear whether these shares were gifted by my father or not to INLAWS as per my mother claims that once in laws gives 5L as cash to us , we can sell those shares and give credit of 5 L as White in her files
So please help me with these 2 questions ..
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SHARES IN SISTERS NAME DURING PRE MARRIAGE AND POST MARRIAGE
2. Tax filings are done by inlaws
3. They want to clear their books and keep only post marriage assets
4. Sister will sell shares from her demat trading account on NSE BSE and receive the amount
5. income tax will be applicable on such sale
6. Balance amount after taxes will be given back to you as cash ( sister will withdraw cash ) OR it would be given to you as gift in cheque by sister to brother
2) father is alive. arrange for a gift deed.
1. sir , this investment was 10 years old so will there be taxed on these as well - cant it be avoided ??
2. I dont think her Inlaws will agree to give any cash to me as they think its given as dowry during marriage
3. Inlaws have not given any verbal confirmation of anything to us that why i have kept all shares with her only and let it grow , if they give verbal confirmation they will give me cash i will sell those shares for them .
4. also have physical share certificates in sisters name with me , i don want to demat them now as again the shares will go in her name , she is willing to transfer those shares in mother name but rules of physical transfer has changed and it cannot be done unless we demat shares
Atleast do the demat. Then decide next line of action.
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