Hi there,
I’ll state my question with an instance. Let’s imagine, I’ve 100 shares which I’ve held long run. If there’s a 1:1 bonus difficulty then I might have 200 shares. The DOA of the primary 100 shares is the unique buy date & the COA is the unique buy worth. Based on the IT guidelines, the DOA of the subsequent 100 shares (bonus shares) is the date of difficulty of the bonus shares & the COA is Rs. 0.
I’ve learn that the Revenue Tax guidelines comply with FIFO (first in, first out) precept. If I promote 100 shares, say inside a month of receiving the bonus shares, they may come out of the unique long-term 100 shares (since they have been “first in”) & will accordingly entice LTCG. Any sale of shares above that, inside 12 months of the date of difficulty of bonus shares, will entice STCG since this subsequent sale will come out of the bonus shares issued.
My query is will the identical FIFO precept apply if, as a substitute of promoting, I reward 100 shares inside 12 months of receiving the bonus shares ? Will the recipient obtain the unique 100 long run shares?
Thanks.
“The holding interval for figuring out the character of Capital Positive aspects, whether or not STCG or LTCG, could be decided from the date of acquisition by the earlier proprietor till the date of sale. The capital asset acquisition value could be decided because the earlier proprietor’s buy worth to compute the capital positive factors.
The sender of the reward just isn’t liable to pay taxes because the Reward Tax Act (GTA) was abolished. Underneath Part 56(2) of the Revenue Tax Act, the recipient is liable to be taxed for items of movable property, resembling shares, ETFs, mutual funds, jewelry, drawings, and so on., with out consideration and exceeding the honest market worth of greater than ₹50,000. Revenue from such items needs to be reported underneath the top Revenue from Different Sources within the Revenue Tax Return, and tax at slab charges needs to be paid.”
assist.zerodha.com
Are there any revenue tax implications on the gifting of shares?
Are there any revenue tax implications on the gifting of shares?
You’ll be able to assume FIFO rule applies to all the pieces. Is there something but it doesn’t apply to?
