| Question And Answer | |
|---|---|
| Subject: | Capital gain question |
| Category: | Income-Tax |
| Querist: | kollipara sundaraiah |
| Answered by: | Law Intern |
| Tags: | Capital Gains, Gift |
| Date: | May 28, 2026 |
Sir, If I give my son or my daughter-in-law the mutual fund as a gift, will they or I be liable for capital gain tax? –
In the hands of the donor, a gift will not give rise to capital gains as it is not a “transfer” u/s 47(iii). In the hands of the recipient, gifts from relatives are exempt u/s 56(2). Daughter-in-law qualifies as a relative. The cost and holding period of the donor will be deemed to be that of the recipient for capital gains when they sell it.
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