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Transfer of equity shares to original owner

Tax queries 398 views 1 replies

My Late mother was primary Holder in 500  Equity Share bought in 1994 , now valued around  more than Rs 10 lakhs 
My cousin brother [uncle's son] is second holder ( Name included as for safety sake in Physical share certificate in 1994 )
 My mother expired in 2017.. 
now my cousin brother gets hold of all shares..after transmission /name deletion of first holder [My Mother]
 my cousin brother wants to give shares to me a ( as it belongs to my mother ) .. 
easiest way is to do off-line transfer from his DP to My DP
but
will this attract 
Long term capital tax ??

so suggest easiest way to do this translaction ..so we save money ..be it in form of capital gains or STT ,or any other such 

Replies (1)

A direct transfer from your cousin will trigger a heavy tax bill for you (on the full Rs. 10 lakhs). To save money, the "easiest" legal route is a tiered gift through a common relative (like your Uncle) who qualifies as a "relative" to both of you under the Tax Act.

 


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