Shares Gift: It is your birthday and you are getting shares as a reward, so do not contemplate it a possibility to grab it instantly. Our recommendation is that you ought to know the tax legal responsibility on the shares obtained as a reward in order that this reward does not show pricey to you. If you are receiving shares as a reward from somebody near you, then know how a lot tax you must pay.
How is the tax legal responsibility on shares obtained as a reward?
For tax legal responsibility on shares obtained as a reward, there is a legislation underneath the Income Tax Act 1961 that if you have gifted shares to your spouse, husband or minor kids, then the revenue via this might be added to your revenue. However, there is a reduction rule that if the financial worth of the gifted shares is lower than Rs 50,000, then you will not have any tax legal responsibility.
If the honest market worth of the shares you have gifted is greater than Rs 50,000 (50 thousand), then particularly this quantity might be thought of taxable and you must pay tax.
If you are gifting shares to shut ones like dad and mom, brothers and sisters, then these might be tax free for you. However, in case your spouse or husband is giving the shares as a reward, then the legal responsibility for the shares might be primarily based on the worth of the shares.
If you have inherited shares, such as via a will, your shares might be tax free and if you have obtained them via marriage or donation, you will not should pay tax, however each time these gifted shares are offered, you might be liable to pay capital features tax.
Gifting shares is a good possibility
If you wish to reward shares to somebody, then you ought to not hesitate supplied you know that it’ll not be a burden on the particular person giving the reward. The tax legal responsibility will both not be there, or might be so low that it is really helpful for the shares you are gifting.
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