Tax savings on gifting shares to sons (not a minor)

Income Tax Income from Capital Gains
1

Hello we are family of four. My mother Demat Account has a total gain of 10lakhs(which was gifted by her father) and also she does not have any other source of income. can we claim LTCG of 375000[250000(basic limit+LTCG new limit] at zero percent tax ?

also one query if she can transfer her shares to 2 sons. can they also claim LTCG limit of 125000?
is clubbing of income applicable for sons(not minor) also or is it exempted?

Kindly reply
Thank You

2

Hi @nikhil_pandit,

The calculation mentioned will be true if these long-term gains are realised after 23rd July 2024.

The shares can be gifted to the children. If they are not minor, clubbing of income will not be applicable. Moreover, if there’s no other income, you can claim the basic exemption and LTCG exemption as well.

3

thanks for helping. also one more query if she receives 80k dividend year it will be basic income or that 1 lakh exemption for dividend will act?

4

Hi @nikhil_pandit,

Dividend is taxed as per the slab rate as ‘Income from other sources’. You’ll get the basic exemption if there’s no other source of income, however, the ₹1L exemption is only available on LTCG.

5

also if my mother gifts shares to her husband will he able to claim ltcg exemption(1.25lakh) or it would be clubbed with the income of the mother(as she has claimed ltcg exemption?

6

Hey @nikhil_pandit

In this case, the clubbing provisions will be applied and your mother will be eligible to claim LTCG exemption of 1.25 lakhs.