Gifting of appreciated foreign stocks in US brokerage account to Indian relative

I am a US Citizen and looking to gift appreciated US stocks to my parents who are Indian nationals. They will open a US brokerage account for this purpose. US laws allow gifting of upto $15k/yr to each individual without tax. I wonder if there will be any tax implication of receiving such stock for my parents?

Looks like lineal ascendents are considered relative and exempt from gift tax in India. However, I wonder if accrued capital gains on the appreciated stocks are also considered exempt?


@Anar_Desai, could you please help out here.

Hey @sabhishek ,

In India, Lineal ascendants are considered relative and hence, gift received by your parents will be exempt. Although they are Indian nationals, If they are resident and ordinarily resident, then only income from capital gains will be taxable in their hands in India.

Actual Capital Gains on sale of shares are taxed in India. Accrued capital gains on the appreciated stocks are not taxed in India as it is notional.

Hope it helps.