Tax liability on capital gain from gift stocks

Hi there,

I have transferred few stocks to my mothers trading account. She do not have any other business/salaried income. Lateron, she sold those stocks. Will the money made from this be taxable and how it would be calculated?

Thanking in advance for your guidlines.

Cheers!

Kiran

Replies (2)

If Securities transaction tax was paid and shares were listed then capital gain from sale of these will be exempted u/s 10(38) if it was held for more than 12 months. Otherwise it would be taxable at 15% u/s 111A(held for less than 12 months).

 

In case of unlisted shares if these are held for more than 36 months then it will long term capital and taxable at 20% otherwise it would be included in total income and taxable at normalrates.(This provision is applicable from 10.07.2014) 

Hello,

It is taxable in your mother's hand.

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