Based on this example
Sender is not liable for any income tax. Does this also means that there would be no capital gains applicable for the sender?
As per example,
Rajiv purchased 2000 shares at INR 100 of ABC Ltd on 15/02/2020. He gifted 1000 shares to his mother, Shweta on 01/09/2020. FMV on 01/09/2020 was INR 200 per share. Shweta sold out these shares on 02/03/2021 at INR 400.
In this case, there will be no tax liability for Rajiv. Further, upon receiving the gift, Shweta is not required to pay anything. However, at the time of selling the shares, she must pay capital gains, which will be calculated as follows:
This means that the only taxable payable is by Shweta as following
buy 1000@100 on 15/02/2020
sell 1000@400 on 02/03/2021
LTCG on 1000*(400-100)
This means that the transfer date (01/09/2020) doesn’t come into picture at all.
Is this the correct way?
From what I have gathered, in case of gifts via Zerodha, it ends up calculating capital gains for the Rajiv and it will also update the price for Shweta as following
For Rajiv,
Buy 2000@100 on 15/02/2020
Gift 1000 with FMV on 01/09/2020
so STCG: 1000* 100 => 1,00,000
For Shweta,
buy 1000@200 on 01/02/2020
Sell 1000@400 on 15/03/2020
STCG for Shweta on 1000*(400-200)
This is obviously incorrect. Plz correct me if I am wrong