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Can I sell shares for my child and transfer the proceeds to India?

Samraat

Samraat Jadhav  |2389 Answers  |Ask -

Stock Market Expert - Answered on Jan 13, 2025

Samraat Jadhav is the founder of Prosperity Wealth Adviser.
He is a SEBI-registered investment and research analyst and has over 18 years of experience in managing high-end portfolios.
A management graduate from XLRI-Jamshedpur, Jadhav specialises in portfolio management, investment banking, financial planning, derivatives, equities and capital markets.... more
Deepak Question by Deepak on Jan 13, 2025Hindi
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Relationship

Thanks a lot for the clear answers to the queries. However, from custodial account, do you mean a brokerage account in USA in the name of B only ( but a seperate account as B already has a brokerage account with the same brokerage where A had the account ). If yes, then please let me know how B can have two accounts with the same brokerage ? Also, can B sell the shares on behalf of C and transfer the proceeds to an Indian bank in which an account can be opened in name of C under guardianship of B? Or can B keep the shares in her already existing account and does not sell the number of shares entitled to C until C attains the age of majority ? Would be highly thankful for more info on this aspect.

Ans: Multiple Brokerage Accounts: Yes, B can have two separate brokerage accounts with the same brokerage. This is often done for different purposes, such as managing personal investments separately from those of the minor (C). To open a second account, B would need to follow the brokerage's account opening procedures, which typically include providing identification, completing a new account application, and fulfilling any necessary Know Your Customer (KYC) requirements.
Selling Shares on Behalf of C: As C's legal guardian, B can sell the shares entitled to C and transfer the proceeds to an Indian bank account. B would need to ensure that all legal and tax requirements are met for both the sale and the transfer of funds. The proceeds can be transferred to an account in C's name, under B's guardianship, in India.
Keeping Shares in B's Account: B can also choose to keep the shares in her existing account until C reaches the age of majority. However, B would need to ensure that the shares are clearly designated as C's property and that all transactions are properly documented.
Transferring Funds to India: B can transfer the sale proceeds to India using various methods, such as bank transfers, online money transfer services, or wire transfers. It's important to choose a reliable service that offers competitive exchange rates and low fees.

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Samraat

Samraat Jadhav  |2389 Answers  |Ask -

Stock Market Expert - Answered on Jan 13, 2025

Asked by Anonymous - Jan 10, 2025Hindi
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Money
A is an Indian who worked in an Indian company ( a US subsidiary ) and received ESOPs and RSUs as part of his compensation. He expired in 2021 due to covid and left shares in USA which are listed in USA. A succession certificate in favour of B ( A's wife) and C ( A's son ) was submitted to the brokerage account in which 50% shares are to be given to each. Since C is a minor, his 50% share is to be kept till he attains the age of majority. The queries are : 1. After payment of Estate Duty in USA, when the brokerage is allowed to release the shares, where will the shares of C have to be kept? Can they be sold and the money parked in a bank account in India ? 2. When a part of the shares are sold by the brokerage for payment of Estate Duty, will the sale price attract capital gains tax ? 3. What will be the cost of acquisition for B & C? Will it be the price at which the shares were originally acquired or the price on the date of death of the holder ( this is the rate which has been considered for calculation of the Estate Duty ).
Ans: Let's address your queries one by one:
1. After payment of Estate Duty in the USA, when the brokerage is allowed to release the shares, where will the shares of C have to be kept?
o Once the Estate Duty is paid, the brokerage can release the shares. Since C is a minor, his 50% share should be kept in a custodial account until he reaches the age of majority. The shares cannot be sold and the money parked in a bank account in India without following proper legal procedures and tax regulations.
2. When a part of the shares are sold by the brokerage for payment of Estate Duty, will the sale price attract capital gains tax?
o Yes, the sale price will attract capital gains tax. The capital gains tax will be calculated based on the difference between the sale price and the fair market value of the shares at the date of death.
3. What will be the cost of acquisition for B & C? Will it be the price at which the shares were originally acquired or the price on the date of death of the holder (this is the rate which has been considered for calculation of the Estate Duty)?
o The cost of acquisition for B and C will be the fair market value of the shares on the date of death of the holder. This value is used for calculating the Estate Duty.
I hope this helps clarify things. If you have any more questions or need further assistance, feel free to ask.

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My son got 245 in bits .He can get any Brecht branch
Ans: Priyanka Madam, by now your son must have been allotted/not allotted any seat by BITS. Please update the status for today. However, please note, A BITSAT score of 245 situates you within the previous two years’ closing-score bands for core engineering streams at the Pilani, Goa, and Hyderabad campuses. At Pilani, the B.E. Chemical Engineering cutoff ranged from 224 in 2023 to 247 in 2024, placing your 245 close to the 2024 threshold and comfortably above 2023’s mark; B.E. Civil Engineering closed at 213 and 238, making admission highly probable; and B.E. Manufacturing Engineering cutoffs of 220 and 243 indicate a strong likelihood of allotment. At Goa, Chemical Engineering closed at 239 in 2024 and 248 in 2023, and Civil around – (not offered in 2024) – but Pilani-equivalent streams suggest safe admission; Manufacturing cutoffs mirror Pilani trends, bolstering your prospects. At Hyderabad, Chemical Engineering cutoffs of 238 and 209 over the two years ensure a secure allotment, while Civil Engineering’s 235–204 band similarly favors your score; Manufacturing at Hyderabad showed closing marks near 218–251, indicating moderate probability. Across campuses, Civil and Manufacturing remain reliably within reach, Chemical at Pilani may require waitlist movement but is feasible given historical fluctuations, and all three streams at Hyderabad and Goa present strong chances. Additional seats open during special iterations further enhance admit probabilities.

Recommendation: Considering consistent cutoff trends and seat matrices, prioritize B.E. Civil and Manufacturing Engineering at BITS Pilani for guaranteed allotment, consider Chemical Engineering at Pilani via waitlist movement, and secure Chemical, Civil, or Manufacturing Engineering at BITS Hyderabad or Goa for assured admission, capitalizing on slightly lower cutoffs and ample seat availability. All the BEST for a Prosperous Future!

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Nayagam P

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I am working as Business Analyst from past 4 years but I wanted to move to technical role. I have done Btech in CSE from tier-3 college. I wanted some advise on the the best way to switch to a tech role. 1. Taking some online boot camp to get in-depth knowledge and doing side projects over the weekends 2. Taking WILP from BITS in Software engineering/ data science 3. Prepare from GATE 2026 and aim for IITs
Ans: Manjunath Sir, To shift into a technical position, integrating structured learning, credentialing, and practical experience is essential. The recommended pathway combines immersive project-based training with a recognized postgraduate credential while keeping a long-term goal of elite technical qualification. Begin with a part-time online software engineering or data science bootcamp, dedicating weekends to substantial portfolio projects to build hands-on skills and confidence in key stacks . Concurrently, enroll in BITS Pilani’s Work-Integrated M.Tech (Software Engineering or Data Science & Engineering) to earn a UGC-approved postgraduate degree without leaving your job, benefitting from weekend live classes, remote labs covering full-stack or analytics tools, and a final semester dissertation that bridges theory with organizational impact . This dual track—bootcamp plus WILP—provides immediate upskilling, peer and mentor networks, and a formal degree. After 12–18 months, if aiming for top-tier R&D or core engineering roles, commence GATE 2026 preparation via a structured three-phase roadmap: concept building (June–August), full-length practice (September–November), and final mock-test calibration (December–January), targeting a CSE rank

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