So assuming that you sold listed shares inherited from your father the LTCG on such shares will be exempt from tax. When you gift shares to the relatives named above there is no tax in either hand. As and when the recipients of the gifted shares sell the shares in the market they will be eligible to tax.
How are shares inherited from a family member?
These shares were inherited by you because you were the sole nominee in your father’s demat account 3. You have sold some inherited shares on which a gain has been made 4. You have bought certain listed shares from such sales proceeds before January 31, 2018 5.
What happens to inherited stock after a death?
What is ‘Inherited Stock’. Inherited stock is a stock that an individual obtains through an inheritance, after the original holder has died. The increase in value of the stock, from the time the deceased bought it until their death, does not get taxed.
Why is My Stepmother inheriting my Father’s estate?
This is a tricky situation, given that your father would have liked you to receive something and you are at the mercy of your stepmother. It was your father’s estate when he was alive, not yours, and now it belongs to your stepmother. Children sometimes confuse their parents’ assets with their own. It’s a common mistake.
Who is the heir if a mother dies without a will?
Do note that if the mother passes away without creating a will, her share in her son’s property will devolve upon her legal heirs, including her other children. An adopted child is also a Class-I heir and enjoys all the rights that a biological child is entitled to.
Can a daughter inherit if her father is alive?
In 2005, it was also ruled that a daughter has the same rights provided that both father and daughter were alive on September 9, 2005. In 2018, the SC stated that a daughter can inherit her deceased father’s property no matter whether the father was alive on this date or not.
Do you need to file your father ITR as legal heir?
You need to file your father ITR as legal heir. The amount received by your mother on the death of your father is totally exempt from income tax.However when your mother earns any taxable income from inherited money, she is liable to file ITR and pay tax. You can contact me through phone consultation on taxfull.
