MR. X RETIRES FROM EMPLOYMENT RECEIVED Rs. 5,00,000 AS GRATUITY (AFTER TAX LIABILITY), PROVIDES Rs. 2,00,000 TO ELDER SON MR. Y OUT OF Rs. 5,00,000. MR. Y INVESTS THE AMOUNT IN SHARES AND THERE IS A PROFIT OF Rs. 50,000. IN WHOSE HANDS Rs. 50,000 WILL BE TAXABLE?
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TAX LIABILITY
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| Originally posted by :PRABEER SARKAR | ||
| " | MR. X RETIRES FROM EMPLOYMENT RECEIVED Rs. 5,00,000 AS GRATUITY (AFTER TAX LIABILITY), PROVIDES Rs. 2,00,000 TO ELDER SON MR. Y OUT OF Rs. 5,00,000. MR. Y INVESTS THE AMOUNT IN SHARES AND THERE IS A PROFIT OF Rs. 50,000. IN WHOSE HANDS Rs. 50,000 WILL BE TAXABLE? | " |
since mr.y is elder n mr x has gifted rs200000 to him out of his capital
clubbing provisions will not b applicable here n it rs.50000 will be income of son only
(elder here assumed is major)
if its LTCG, then thr is no tax liability. only STT will be paid.
if its STCG, then Mr. Y will have to pay tax. Assuming that he has attained the age of majority.
1 Whether investments (NSC, Bank Deposits, etc.) made on spouse / children name can be claimed under 80C benefits
2 Whether bank deposits can be claimed under 80 C benefits (if so how many years this has to be placed in deposits)
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