• Gift of shares

Hi,

I received some shares as gift from my father a year back, and have disclosed the dividend received from the same in my IT returns. 

I am now likely to face some compliance issue at work because of this stock holding - Can I transfer the shares back to my father as a gift (without consideration). If yes, will the date of acquisition remain his original date of acquisition, before transfer to me.

Thanks
Asked 4 years ago in Capital Gains Tax

Hi,

 

Yes, you can transfer the shares to your father as a gift.

 

It is advisable to make the gift deed for the same.

 

Yes, in case of gifted assets, which includes shares, the period of holding is reckoned from the date of purchase by the owner who has actually acquired the asset.

 

We may help you in drafting gift deed.

Payal Chhajed
CA, Mumbai
5188 Answers
291 Consultations

5.0 on 5.0

Hi,

 

Yes, you can transfer the shared to your father without consideration. 

 

The date of acquisition will remain the original date of acquisition. 

 

Please ensure your father shows the gift amount in his return of income as an exempt income. 

Lakshita Bhandari
CA, Mumbai
5687 Answers
912 Consultations

5.0 on 5.0

Hello,

 

Yes, you can gift back the shares to your father. The date of acquisition will remain his original date of acquisition, in case of gift.

I hope this answer satisfies your requirement.

 

Regards,

CA Hunny Badlani

Hunny Badlani
CA, Madhya Pradesh
2608 Answers
16 Consultations

5.0 on 5.0

Yes, date of acquisition will be actual date of purchase by your father. 

Vivek Kumar Arora
CA, Delhi
4863 Answers
1052 Consultations

5.0 on 5.0

Yes since the transfer has been done via Gift the date of acquisition will remain the same when your dad i.e. the actual owner purchased them as per section 49(1).

 

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Naman Maloo
CA, Jaipur
4280 Answers
98 Consultations

5.0 on 5.0

Hi,

You can transfer the shares to your father at no consideration. However, Gift deed has to be prepared. 

Date of acquisition will remain his original date of acquisition.

Thank you!

Navya Tejas
CA, Bangalore
45 Answers

Not rated

Yes it can be as it's between father and son but it would be better if you purchase a ₹500 stamp paper.

Naman Maloo
CA, Jaipur
4280 Answers
98 Consultations

5.0 on 5.0

Hi,

A gift deed can be only executed on a stamp paper. 

You can call me in case of any further assistance.

 

Thank you!

Navya Tejas
CA, Bangalore
45 Answers

Not rated

Yes of course.

Vivek Kumar Arora
CA, Delhi
4863 Answers
1052 Consultations

5.0 on 5.0

Better if properly stamped.

Hunny Badlani
CA, Madhya Pradesh
2608 Answers
16 Consultations

5.0 on 5.0

Yes, it can be made in plain paper.

 

 

Payal Chhajed
CA, Mumbai
5188 Answers
291 Consultations

5.0 on 5.0

A deed on plain paper without any notary shall not be considered as a valid documentary proof.

Lakshita Bhandari
CA, Mumbai
5687 Answers
912 Consultations

5.0 on 5.0

Hello Sir,

 

Yes, you can transfer the shares back to your father as a gift (without consideration).

 

Yes, the date of acquisition will remain his original date of acquisition, before transfer to you.

Karishma Chhajer
CA, Jodhpur
2450 Answers
29 Consultations

5.0 on 5.0

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