Excellent thread!!
Diosys,my parents held iob shares for last few years from its ipo rate of Rs24,and gifted it to me in Dec last year.At that time rate was Rs100.I sold them in Feb this year at 120(needed the cash!
1.Does this qualify as short term capital gains or long term gains?
2.If short term,is it from the time it came to my demat acct,or paying from ipo rate which was from many years ago.
Thanks in adv,
Jay Raj
Diosys,my parents held iob shares for last few years from its ipo rate of Rs24,and gifted it to me in Dec last year.At that time rate was Rs100.I sold them in Feb this year at 120(needed the cash!
1.Does this qualify as short term capital gains or long term gains?
2.If short term,is it from the time it came to my demat acct,or paying from ipo rate which was from many years ago.
Thanks in adv,
Jay Raj
1.) It being a long term or short term would depend upon the holding period of the previous owners....Since your parents have held it for a long time it would be a long term capital asset...This being the provision of Explanation 1(i) to Sec 2(42A) of the Itax act...
2.) As per Sec 49(1) of the Income Tax act the deemed cost of accusation under the scenario of a gift is the cost to the previous owner...Previous owned being the person who had actually paid for the asset...in your case your parents....
So enjoy....there is no tax liability since it is LTCG !!!