How can book loss and file incometax on re-gift stocks

Income Tax
#1

i have buy REC 200 on price of 220 share in 2017, after that i gift this stock to my father and transfer this stock from my csdl to my dad’s cdsl account.

after that my dad got bonus share in their other broker so they have around 400 share in his account now they want to gift me back my 200 qty back into my cdsl account.

how how can i calculate tax on this? i have contract note of 2017 purchase of 200 share on 220 price and today i got gift back same 200 qty from papa.

In 2017 i have invested 44000 rs transfer this stock to papa’s account and todays papa send me back 200 qty and i value of its 21600rs. so today i want to sell this stock then how can book -22400 rs loss or what any suggestion?

#2

@Bharti_Vasvani Can you help here?

#3

Hello @jaydalwadi,

When shares are gifted to relatives as per the income tax act, the date and cost of acquisition are taken of the original owner of such securities. In this case, it is as good as shares were never transferred by you. Hence you can report the capital gains by classifying them as long-term gains (as they are held for more than 12 months) and the purchase price paid by you as the acquisition cost.

Hope this helps!

#4

Hi, on the same thread, one of my friend has transferred me his shares worth 10 lakhs as a collateral for the money that i have lend him. After few years he gives back my money to me and I transfer back all his shares.
what is the tax liability for me in this whole transaction? please note that i have not sold any shares in my account.

#5

Hello @pranav900,

In this case, since no shares were sold by you, you have not realised any gains on the loan given as collateral. So there is no taxable capital gain in this transaction.

However, if you have received any interest on such a loan then it shall be taxable as Income from Other Sources.

Hope this helps!

#6

Thanks @Bharti_Vasvani for your reply!
As per mentioned in this link, Is there any income tax implications on gifting of shares?, **the receiver is liable to pay tax on receiving (even if he does not sell the shares) and the same will come in his tax slab as tax on other income sources. **
Can you please let me know if I will be liable to pay this tax?
Thanks

#7

Hey @pranav900,

When shares are gifted to a friend without adequate consideration of value> 50K then it is taxed, whereas in your case you have not received these shares as gift, they are just collateral for the loan.

Hope this clarifies.

#8

Hi,
I have brought 35 shares for Rs.900 each
Now the stock price went to Rs.700 each
I gifted those 35 shares to my brother(blood relation)
hence I gave him when the holding was going at ₹200 loss.
can I show this loss in ITR ?

#9

@Bharti_Vasvani if you can help here

#10

Hello @P_M,

No, you won’t be able to report this loss in your ITR since you have gifted these shares to a relative for no adequate consideration.

You can read more about it on: Tax on Gifted Shares & Securities - Learn by Quicko

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