My major Granddaughter and I have Dmat Account with the same DP. If I transfer some shares from my Dmat acct to my Granddaughter as a gift, what are the Income Tax implications for both of us?
Further to my above query, I have to add as follows:
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I gifted shares of three companies to my Granddaughter who is a major. The value of the gifted shares is about 2,17,000/- I am told that Daughter’s Daughter is not considered as a lineal descendant and since the value of gift is more than Rs 50,000, the entire value of the gift is taxable in her hands.
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If this is the case, where should this gift be entered in the IT Return of my Granddaughter?
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Further, my DP’s Statement shows these gifts as normal TRXNs and realised profit as LTCG of 1,49,000/- This statement of DP will be picked up in AIS and the LTCG will be taxable in my hands. An inquiry with the DP revealed that their system does not distinguish between taxable and non-taxable TRXNs and hence are shown as regular TRXNs.
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Schedule 112A in IT Return Form has no provision to show the TRXNs as gifts.
Kindly guide me how I should proceed in the matter.