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Transfer of shares from family account

08 September 2021

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 ?

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4 Replies

JGM (Knowledge Sharer) (443 Points)
Replied 09 September 2021

Was there a will? Also, is your query from tax perspective?

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CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 09 September 2021

It should be treated as family transfer

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GujaratBull dotcom (3 Points)
Replied 09 September 2021

Yes ,the very purpose of the query is to know tax liabilities of son and daughter .

JGM (Knowledge Sharer) (443 Points)
Replied 09 September 2021

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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