As my parents have few shares worth investment Rs 1.15 Lacs now not alive. I have already transferred them into my demat account. Do I have to file Income tax return. My income is not much & have never fielded IT Return. Can you guide me regarding it.

Ans: You have done the demat transfer from your parents holdings.
This transfer by inheritance is generally not treated as a normal sale.
Therefore, simply receiving shares worth Rs.1.15 lakhs does not create immediate capital gains.
The important point is that the shares now belong to you.

» Do You Need To File ITR?

Merely inheriting shares does not automatically make ITR filing compulsory.
ITR requirement depends mainly on your total income and other conditions.
The Rs.1.15 lakh value of inherited shares alone does not decide this.
If your total income is below the applicable basic exemption limit, ITR may not be compulsory.
However, certain other conditions can make filing mandatory.

» Very Important For Future Sale

Keep your parents original purchase records, if available.
Your cost for capital-gain purposes generally follows the previous owner's cost.
The holding period of your parents is also considered.
This can be very useful when you eventually sell the shares.
Therefore, do not assume your cost is Rs.1.15 lakhs.
Rs.1.15 lakhs is the current market value, not necessarily your tax cost.

» If You Sell The Shares Later

Capital gains tax can arise when you sell the inherited shares.
The tax will depend on the original purchase cost.
It will also depend on the purchase date and sale date.
For listed equity, LTCG above Rs.1.25 lakh is taxed at 12.5%.
STCG on eligible listed equity is taxed at 20%.
The Rs.1.25 lakh exemption applies to eligible LTCG in the financial year.

» Should You Start Filing ITR?

Even if filing is not compulsory, voluntary filing can be useful.
It creates a proper income-tax record.
This can help later with loans and financial documentation.
It also makes future capital-gain reporting easier.
Since you have inherited shares, maintaining proper records is important.

» Documents You Should Keep

Keep your parents demat statements.
Keep old contract notes or purchase statements if available.
Keep the inheritance or transmission documents.
Keep the latest demat statement showing the transferred shares.
Also keep documents showing the date of transmission.
These records can help establish the original cost and holding period.

» Final Insights

You do not need to file ITR merely because you inherited Rs.1.15 lakh shares.
Your total income and other filing conditions must be checked.
The inheritance itself normally does not create immediate capital-gains tax.
Keep the original purchase details of your parents safely.
This information becomes important when you sell the shares.
If your income is modest, voluntary ITR filing can still be beneficial.
Before filing your first ITR, get your income and investment details checked once.
This will help you avoid errors in the capital-gain reporting later.

Best Regards,

K. Ramalingam, MBA, CFP,

AMFI-Registered MFD – ARN 4188

www.holisticinvestment.in/

https://www.linkedin.com/in/ramalingamcfp/