Off market transfer of shares from single name to joint name

Hi

This transfer would be considered as gifts. There is no tax on gift to relatives.

On sale of shares, you and your son would be liable to pay capital gain taxes in proportion to your ownership.

It is a case of gift between relatives therefore no tax is payable. If shares will be sold subsequently then capital gain will be taxable in proportion to the shares held. 

Dear Sir,

Hope you are doing well !!

Gift from the relative is not covered in the taxable income in the hands of the recipients.

So, there will be no tax liability as the same will be treated as gift money.

However, on sale of shares, you and your son would be liable to pay capital gain taxes for respective ratio.

Hi

No it will not be taxable you can show it as gift transfer .but on subsequently sale it will be taxable on the basis of holding ratio

First of all, such a transaction does not carry any tax provided the trading account linked to the joint demat account is yours only. Secondly, any such transfer to any relative (in a case where the trading account belongs to any of the relatives) will be considered a gift and exempt from tax u/s 56(2) of Income Tax Act since relative covers spouse and children. The cost of purchase will be the cost for capital gains purposes, which arise on sale of shares.

Hope you get it. Pl feel free for further clarification