Dear Zerodha,
I am a mother, wishing to gift my only son stocks in my zerodha demat account.
I and my son, we both have Active Zerodha demat accounts.
I have read zerodha and quicko article about gifting and taxation.
It says I, the Sender of gift stocks will not be liable for any income tax implications.
My doubt :
My son will get the stocks from me, value well above Rs. 50,000/-
Will my son, as recipient, be liable to pay income tax on that gift?
What will be income tax implications for my son?
I REQUEST you to reply to my query as soon as possible.
Solving this doubt, coming from reliable source like you is very important to us.
Thank you.
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How to calculate capital gains on shares received as gift.
as per above case
mother buy share @ 100 and at the time of gifting shares to son, price of share is 150.
son sell share @ 180.
what buy price should be consider to calculate capital gains 100 or 150 ?
Hello Kulsum,
Thank you so much for your quick response.
- Follow-up questions, if you please :
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Will my son have to show stocks transfer as income while filling ITR?
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He will not have to pay ANY type of tax, say Capital Gains tax or show it as normal Income from other sources?
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I also have some mutual funds in zerodha.
As far as I am updated in today’s world, MFs cannot be gifted or transferred, right?
They can only be redeemed.
Am I right to understand this or is there any way I can also transfer MFs to my son?
Appreciate your response.
Thank you.
Yours sincerely.
@kulsum_khan : I would also like to know answer to this please.
Please allow me some time to revert on this.
Hi Manjiri,
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Gifts received from direct relatives are exempt from tax on transfers. It is better to have a gift deed created for high-value transfers.
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Capital Gains tax only applies when your son sells the stocks.
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Mutual funds can be transferred, but at Zerodha, our gifting feature currently does not support this transfer. However, you can use CDSL Easiest to transfer the Mutual fund units between demat accounts. You can refer to this article: How to transfer shares from the Zerodha account to other CDSL demat account using CDSL Easiest?
@Private This article from Quicko has detailed tax implication and calculation details: Tax on Gifted Shares & Securities – Learn by Quicko
Hope this helps.
1 Like
Thank you Kulsum.
Now all my doubts are cleared.
Thank you truly.
Have a nice day.
can such transferred mutual funds be redeemed at zerodha coin? I made mutual fund transfer from motilal to groww and groww doesn’t allow redemption of transferred mutual funds.