| Question And Answer | |
|---|---|
| Subject: | Gift of listed Company Shares within family relative |
| Category: | Income-Tax |
| Querist: | Manish Mehta |
| Answered by: | Law Intern |
| Tags: | Gift, section 56(2)(x) |
| Date: | March 23, 2025 |
If Mrs.A gift shares which cost is 2 lacs source is explainable in the year 2000 and now the market value is 2 Cr to Relative , which precaution to be taken so that it is not added in Sec 68.
Is there any restriction on amount to be gifted to relative and is there any occasion is required to give gift to be exempt u/s.56(2)(x)?
What documents to be prepare for Gift of 2 Cr of listed shares other the Gift Deed?
Whether Donee has to disclose in ITR and if so what value to be disclosed?
As regards the precautions in the hands of the donor for Section 68, presumably, he will have filed a return in the earlier years showing the shares as an asset in the Balance Sheet. Generally, he will have to maintain proof of source of the purchase in 2000.
There is no limit on amount or need for an occasion if gifted to a relative. It will be fully exempt under Section 56(2)(x).
As regards the documents, the Gift deed, Delivery Instruction Slip, demat statements, PAN copies, valuation report and proof of relationship will be required.
As regards ITR Disclosure, the Donee will have to disclose ₹2 crores as exempt income in Schedule EI. No tax liability arises.