Offmarket tax

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Arvind

• November 21, 2020 08:02

Who have to pay tax transferer or transfer?

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

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

 

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• Official comment

  

  Team Quicko

  • November 21, 2020 11:39

  Hey Arvind, 

  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. he 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 - Is there any income tax implications on gifting of shares?

  Hope this helps:)

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