I GIFTED MY COLLEGE GOING SON RS. 100000 DURING 2015-16 AND HE MADE A STCG OF RS.10000 FROM SALE OF SHARES BOUGHT BY HIM. HE HAS NO OTHER INCOME. WHAT WILL BE TAX IMPLICATION ON HIS ITR FOR AY 2016-17? ANY TAX TO BE PAID ON STCG?
G RAMESH
2 Replies
CA VIRAL SANGHVI
(Finance head)
(681 Points)
Replied 08 July 2016
Clubbing of Income of a Major Child (18 or more than 18 years old)
In case of Major child clubbing provision is not applicable so in the present case STCG is taxable in the hands of your son.
mohammad rasool baig
(Management Consultant)
(1026 Points)
Replied 08 July 2016
If any assessee is gifted an amount to his/her major son & the major son earned some income by investing the gifted amount. In such a case, clubbing provisions will not be applicable. since it is earned by the major son.
It is one of the famous & proper way to save tax legally.
As far as taxabilityis concerned, since major son income is lower than basic exemption limit. Hence STCG is not taxable.
Recent Topics
- Missed paying advance tax
- Freelance CA with COP Available for Part-Time Comp
- Residential status of studying in abroad
- Itr2 validation errors
- GST AMENDED HSN SUMMARY
- Interest earned on deposits placed with corporates
- Pension Misclassification and Correction in ITR
- Failed to File SPL-02 before June 30th
- AIS Utility
- Fees receipts for Technical services ..income
Related Threads
Trending Online Classes
CAclubindia
