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Tax implications for gifting stocks, etfs to relative.

526 views 2 replies

Rahul

57 Points Posted on 09 June 2026

If I gift stocks, Gold or Silver ETF to a relative like Father, Brother, etc then:

1. Are there any tax implications for me while gifting? If yes then, please explain.

2. Are there any tax implications for the relative or me if they decide to sell it in future? If yes then, please explain.

3. If my relative has taxable income less than exemption limit then, will he has to pay any tax while selling gifted stocks, etfs?

4. Can they gift it back to me?

Please share any articles, links, etc as well.

Thanks in advance!

Replies (2)

Quick Summary

Gifting stocks, ETFs, gold ETFs or silver ETFs to specified relatives is tax-free for both parties at the time of transfer. On sale, the recipient pays capital gains tax using the donor's cost and holding period. Tax savings may be possible in some cases, but proper documentation and genuine gifting are essential.

Aashok FC Advisory

Finance Compliance Consultant

1116 Points Posted on 09 June 2026

✅ Gift of stocks/ETFs to specified relatives is tax-free at the time of gifting.
✅ No capital gains tax on the donor when gifting.
✅ On future sale, recipient pays capital gains tax using the donor’s cost and holding period.
✅ Lower-income recipients may be able to utilize the basic exemption limit.
✅ Securities can be gifted back, provided the transaction is genuine and properly documented.

Rahul

57 Points Posted on 14 June 2026

Thanks for response!

Can I use this to save ltcg/stcg tax on myself? I heard that we need to register Gift deed as IT dept. might ask for it in case of scrutiny. Anything I need to be careful of while gifting stocks/ETFs for tax saving purpose?