Hey, you need to report your unlisted shares holding as of 31st March 2022 while filing your ITR, even if you have not realised any capital gains from it or have not received any dividend income from it.
Where do I need to report it exactly(the section in quick), and how do I get company details like PAN etc which would be needed
With 54EE
- I am not able to find what are the Long Term Specified Assets that are allowed. Where can I find details about it?
- Do we have any better option other than 54EE since there is an exemption limit of Rs. 50 Lakhs.
Thanks
Where do I need to report it exactly(the section in quicko), and how do I get company details like PAN etc which would be needed
what is the tax rate on long term capital gain from sale of share which were unlisted at the time of purchase and listed at the time of sale and STT not paid on purchase
Continuing the discussion from Tax rate on long term capital gain from sale of share which were unlisted at the time of purchase and listed at the time of sale:
NO BODY KNOWS THE ANSWER OF THE QUESTION ?
Hello @RKS,
This will be taxed as Long term capital gains u/s. 112A at a rate of 10% in excess of INR 1,00,000/-.
Hope this helps!
Hi @TeamQuicko
Short version of the question
Parents have almost no income. I live in India and earn RSUs listed in USA from my employer as perquisites. Can I save tax by gifting them to parents who then sell them before 24 months (from the actual date of acquisition not date of gift) so that STCG applies and the tax on the profit from sale is charged by adding the profit to their normal income as per slab?
Long version of the question
I work for a MNC in India which has it’s stock listed on NASDAQ in USA. I get RSUs of the US stock as a part of my compensation (listed under perquisites in form 16).
Scenario:
Note that my mother, father and the HUF have almost no income.
I gift “x” amount of those vested stocks to mother, “y” amount to my father and “z” amount to my father’s HUF.
Assumptions/Understanding:
(1) These gift transactions would not trigger any tax payment at both ends (giver and receiver) as they are exempted relatives.
(2) Given this transaction happens electronically (from my trading account to the receiver’s trading account), a record is always available of this transaction so a Gift Deed is not required.
(3) Since the gift is not given to the spouse here so clubbing provision don’t apply here.
(4) NASDAQ listed equity is counted as unlisted shares and STCG at tax slab is applied for sale under 24 months, LTCG at 20% with indexation after 24 months applies.
(5) The cost and date of acquisition of the gifted stock in the receiver’s hand would be the same as me (the giver).
(6) If my mother sells “x” amount of stocks within 24 months of the date of acquisition (not gifting), STCG would apply on the profit derived from “x” amount of stocks (sale price - cost of acquisition) as a part of her normal income as per her tax slab. And given her income is almost negligible that profit (upto a max of 10 lakhs) gets taxed at a rate much lower than 34.32% (had I sold them, I would have paid at 34.32% or had I waited for LTCG to kick in, 20% with indexation benefit). Is this understanding correct?
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Hi @TeamQuicko
Would appreciate your opinion on this. This is a bit more complicated that regular tax questions which is why opinion of multiple experts would help me a lot.
Hello @phoenix52,
Yes you can transfer unlisted shares to your parents as gift and capital gain earned on them shall be taxed in the hands of transferee. (Please check your company’s policy if transfer is permissible or restricted)
Your understanding for LTCG/ STCG taxation is correct, but HUF shall not be considered as your “relative” as per income tax act. So if value shares transferred to your father’s HUF is more than INR 50K then tax under IFOS shall be levied on FMV of shares on date of transfer in hands of HUF.
Hope this helps!
Thanks for replying. I am a member of my father’s HUF and gift from me would be tax exempted. Clubbing provisions would apply under section 64(2) for gift to father’s HUF.
Gift deed on a stamp paper of appropriate amount and paying 0.5% of asset value as stamp duty would be an option but is it necessary?
In case we don’t get the gift deed ready and a notice comes. Can the electronic records (trading account statements of both giver and receiver) of the transfer and proof of blood relation serve as a satisfactory reply to the notice? This would be a common situation, isn’t it?
Hello @phoenix52,
As per the Income tax act, there is no specific requirement for gift deed in case of transfer of securities.
Hi,
I had sold some stocks I received as ESOPs and RSUs (listed in LSE, hence treated as unlisted shares)in previous financial year, paid STCG and LTCG on them (a few were sold within 2 years of exercising, hence both taxes are applicable). Now I have brought property at the begining of current financial year in May, will I be able to claim refund on the capital gain taxes I paid in previous financial year, as I have used that money and invested in the property.
Thanks V
Hi @Wolf_Roolf
If you had invested the sale consideration amount in CGAS (Capital Gain Account Scheme) up to the due date of return filing, then you will be eligible to file a revised return and claim an exemption under section 54F.