I’m planning to switch shares held in particular person capability to my HUF (Hindu Undivided Household) account the place I’m Karta. How and when would the capital beneficial properties be accounted for? Will it’s primarily based on the date I bought the shares initially after which offered from HUF?
– Saurabh
(Question is answered by Amit Maheshwari, Tax Accomplice, AKM World, a tax and consulting agency)
A switch of shares by a person to the HUF within the type of present will probably be tax exempt as it might be categorised as ‘property obtained from a relative’ which is particularly exempt below part 56 (2)(x) of the Earnings Tax Act, 1961.
Additional, when the HUF transfers these shares, it might be taxable within the fingers of the HUF.
Transferring 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 beneficial properties of the transferor. Therefore, on this case, the value paid and the interval of holding of Karta can be thought-about for calculating the capital beneficial properties within the fingers of the HUF.
(You possibly can ship your private finance queries at mintmoney@livemint.com)
Supply: Live Mint