How are gifted shares taxed?

[Surbhi_Pal]

Hi @venkat_P,

Yes, they do have an update where one mutual fund investment can be made directly from a minor’s demat account. However, for stocks, they can’t be bought directly and can only be transferred as a gift.

@venkat_P

• if parent invests in minor demat account via MFs, shares, sgb and if it accumulates to an amount of 20 lakhs and with gaina become 40 lakhs . At age of 18 minor declares himself as major. Now will he be taxed for entire 40 lakhs or only gains of 20 lakhs at age 18?

The gains of ₹20L will be taxable.

More about tax implications on a minor’s demat account is written in this thread: What are the tax implications on minor’s demat account?