Thanks @Shrutika_Shah for reply,
What does “adequate consideration” mean ?
Hi @csteja
Adequate consideration means the reasonable value of the goods or services.
Hi,
Recently I gift stock to my mother. Gifting amount was greater than 50k. I know that my mother does not have to pay tax as Im in her family.
Do I & her need to keep any kind of record about this transaction for tax purposes?
Hello @pankaj001
As correctly mentioned by you, no tax implications will be there on the gift of stocks to your mother.
When your mother sells the shares, the period of holding will include the period you held the shares and the purchase cost will be the amount you paid to initially buy the shares. So, you’re required to keep the record of the same.
Hope this helps!
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Hi TaxQ&A team,
I gifted some shared to my wife. I understand that it will not be counted as my wife’s taxable income as she comes under close relative and tax is not applicable for such gifts. My question is, how to ask the exception of such gifts (from close relative) in the IT return (ITR2)? We have never filled ITR2 before.
Hi @sumit2509
You can report such incomes as IFOS > Exempt Income in your ITR.
Case 1 - if I gift some shares to my wife and after some time she sold those shares then who will be liable to pay tax here me or my wife?
Case 2 - if I gift some shares to my children (minor) and after some time there shares are sold then will the capital gains be taxed to my income?
Hi @Walker
Case 1: When you gift shares to your wife, it is exempt as it is a gift to a relative. However, when she sells those shares, the taxability arises on her.
Case 2: When you gift shares to minor children and they are sold later, capital gains will be taxed to you.
You can read about the Clubbing of Income as per Section of Income Tax Act - Learn by Quicko
@Shrutika_Shah in case 1 wouldn’t the provision for clubbing of income will be levied ?
If I gift some shares to my wife and after some time she sold those shares then who will be liable to pay tax here me or my wife? and will the clubbing of income provision be levied or not ?
Hey @Walker,
If the spouse has any sources of income, they will be liable to pay tax. In case they don’t, clubbing of income will be applicable.
@Surbhi_Pal can you please share me the link (like of the income tax website or any other place) where I can find this in more detail
@CA_Niyati_Mistry i want to know more about the taxation on sale of gift assets, where can I read it
Hello @Walker,
The sale of asset is considered as Capital Gains whether it was gifted or purchased.
You can more on Tax on Sale of Gifted Shares and Capital Gains.
Could you please provide guidance on how to report Gift of Foreign Shares owned by a Resident Father to his US citizen son/daughter on the Resident Father’s ITR filing.
Resident Father has bought shares since 2020 through LRS in his foreign brokerage account and reported the same on Sch FA of ITRs filed over the past couple of years.
For the year where shares are gifted how does Residemy Father report the gift of Foreign Shares in Sch FA?
Further what is the market value of gift of shares that can be given in a FY? Is it upto LRS US$250,000 or this limit does not apply? Additionally, any permission needed or reporting to be done to RBi?
Appreciate your views. Thnx!
Hello @JatinS,
The giver is not required to report gift while filing ITR. In your case, the father will have to show nil closing balance while reporting foreign shares in Schedule FA.
To know more about the LRS limits and applicability of FEMA provisions, kindly connect with a person who has knowledge of the same. For any tax related help, you can reach out to us.
Thanks for the revert … just a follow up - would a drop of say the annual LRS limit of $250K worth in shares in Sch FA without corresponding entry in Sch CG, not raise a query by the AO?
Hello @JatinS,
There is no schedule to report gifts given or money transferred through LRS while filing ITR. In case the ITR is selected for scrutiny purposes, the AO might ask for further information.
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3 posts were merged into an existing topic: How are gifted shares taxed?