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Transfer of shares from family account
My clients had joint DMAT account in which father was first holder ,son as second holder and, daughter as third holder . After demise of father son has become first holder and daughter second holder . Father wanted to give all stocks to daughter and that's why the son wants to transfer the shares to her sister. In wich category this can be done . Family transfer or gift ?
Replies (4)
Was there a will? Also, is your query from tax perspective?
It should be treated as family transfer
Yes ,the very purpose of the query is to know tax liabilities of son and daughter .
If there is a will pursuant to which the transfer is undertaken, there should not be any tax liability either in the hands of the son or the daughter.
If there is no will, the transfer could come within the ambit of section 56(2)(x) of the Income-tax Act, 1961. However, since both of them are relative as defined in section 56(2)(x), the said transaction should not be taxed in the hands of the son or the daughter. It is advisable that the rationale for this transaction is documented properly.
In either of the case, when the daughter sells of the holding, the gains / (loss) will that be of the daughter
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