Prop­erty gifted to chil­dren is not tax­able


stamp duty, de­pend­ing upon the state in which the prop­erty is sit­u­ated. Fur­ther, with re­spect to gift of eq­uity shares, it would be ad­vis­able that for any such gift to be doc­u­mented in a le­gal doc­u­ment viz. a gift deed and placed in the records. How­ever, you should seek a le­gal opin­ion on the ap­pro­pri­ate doc­u­men­ta­tion and stamp duty im­pli­ca­tions.

The onus of prov­ing that the trans­fer of im­mov­able prop­erty and eq­uity shares be­tween your daugh­ter and you are gifts/ir­rev­o­ca­ble trans­fers

ASK MINT would be on you and your daugh­ter and there should be ro­bust doc­u­men­ta­tion to sup­port the claim.

Also, for your daugh­ter, as she would be re­ceiv­ing the shares and prop­erty as gift, she can con­sider the cost of ac­qui­si­tion as the cost in­curred by you to ac­quire these as­sets, as and when she is com­put­ing cap­i­tal gains/losses on sale of such as­sets by her.

Parizad Sir­walla is part­ner and head, global mo­bil­ity ser­vices, tax, KPMG in In­dia. Queries and views at mint­[email protected]

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