I’m planning to switch shares held in particular person capability to my HUF (Hindu Undivided Family) account the place I’m Karta. How and when would the capital good points be accounted for? Will it’s primarily based on the date I bought the shares initially after which offered from HUF?
– Saurabh
(Query is answered by Amit Maheshwari, Tax Partner, AKM Global, a tax and consulting agency)
A switch of shares by a person to the HUF within the type of present will likely be tax exempt as it could be labeled as ‘property received from a relative’ which is particularly exempt below part 56 (2)(x) of the Income Tax Act, 1961.
Further, when the HUF transfers these shares, it could be taxable within the arms of the HUF.
Moving on to the computation mechanism, when an asset is presented or inherited, the acquisition value and the interval of holding of the earlier proprietor can be handled for computing the capital good points of the transferor. Hence, on this case, the worth paid and the interval of holding of Karta can be thought-about for calculating the capital good points within the arms of the HUF.
(You can ship your private finance queries at [email protected])
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