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Inheriting Shares and Charity: Tax Implications?

Vivek Lala | Answer |Ask -Follow

Tax, MF Expert - Answered on Sep 11, 2024

Vivek Lala has been working as a tax planner since 2018. His expertise lies in making personalised tax budgets and tax forecasts for individuals. As a tax advisor, he takes pride in simplifying tax complications for his clients using simple, easy-to-understand language.
Lala cleared his chartered accountancy exam in 2018 and completed his articleship with Chaturvedi and Shah. ... more

Question by Piyush on Aug 31, 2024Hindi

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Dear sir, i have got the shares in oct 23 after death of my brother as a i was nominee in dmat account . Now if i sell the shares and do charity, do i have to pay tax ? How to calculate cap gain tax as i do not know his purchase details

Ans: First the shares have to be transferred to your name and then you can sell the shares and pay tax
Yes tax has to be paid if any

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

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I have recently inherited my father shares after his death. In case I sell them what would their tax treatment.. ie will I have to pay tax on full sale value or can I deduct the purchase cost of these shares which my father had paid??

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I have inherited shares thru Will from my aunt in the year 2008 in the demat form. Since then I have kept as it is & never sold any of the shares as I'm not well versed with the market. Now as there was some urgent expense in the family I had to sell few shares. So Sir, my question is as I have inherited shares by Will, so should I have to pay Capital Gain tax on the sales of shares. If yes then how it is calculated. Please advise.

Ans: 01. There is no issue of inheritance involved in this case, as far as income tax is concerned.
02. If you sell shares, it would be subject to LTCG Tax under Income Tax.
03. Please note that only Gain would be taxed & not gross receipts from sale of shares.
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I had 100 shares of Motilal Oswal Financial Services as on June 1, 2024. They announced 3:1 bonus issue with a record date of June 10, 2024. How should I treat my share holding for Capital Gains purpose at the time of selling these shares in part lots : a.100 shares @ the original share purchase rate and 300 shares at NIL rate? b. 400 shares each @ 1/4th of the original purchase price? Need clarification in this regard.

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I was allotted free shares as if nonud shares. If I sell, what is the capital gain tax on it? At what rate? Thank you.

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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