Offmarket Tax- Income from Capital Gains

Who has to pay tax transferer or transfer?

My friend is Transfering listed company Shares from the off-market sale, I am purchasing them through off-market, how is the tax treatment for that, who has to pay the tax l, how much tax, what documents should I maintain?

If, he transfers through GIFT what would be the TAX?

Hello @Aayushi_Sharma

Gift of movable property such as shares, ETFs, mutual funds, etc without consideration and exceeding Fair Market Value of more than INR 50,000 will be taxable in the hands of the recipient. This income should be reported under the head ‘Income from Other Sources’ in the Income Tax Return and tax should be paid at slab rates. The transferor of gift should have a valid source of income to justify the gift amount.

Sale of shares, ETFs, mutual funds etc received as a gift would be taxable as Income from Capital Gains. The recipient should file ITR-2 and pay tax at applicable rates.

Check out this article we have written in collaboration with Zerodha to know more.