Your Queries – Earnings Tax: Gifting moveable property to relations doesn’t set off taxation

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By Chirag Nangia

I intend to present all my share holdings to my son who’s unemployed and doesn’t file any return. Advise one of the simplest ways to switch the holdings to allow him to do share buying and selling. What shall be his tax liabilities?
—Rajinder Pal Singh
From an earnings tax perspective, gifting moveable property to relations doesn’t set off taxation. Due to this fact, it’s possible you’ll switch shares to your son with out attracting any tax legal responsibility in his arms. When he lastly sells these shares acquired as present, for computation of capital good points, he shall embody in his interval of holding, the interval for which these have been held by you. Additionally, the fee at which you acquire the shares is handled as your son’s price of acquisition.

I’ve two mutual fund folios, one in my identify and the opposite in my spouse’s identify, every with joint holding. In my and spouse’s Type 26AS, the reported quantity underneath SFT-010 is way more than the purchases made by me and my spouse. What ought to I do?
—P Ok Rakshit
As per earnings tax guidelines, a mutual fund home, for the dedication of threshold of Rs 10 lakh, in a case the place the account is maintained or transaction is recorded within the identify of a couple of particular person, shall attribute your complete worth of transaction or the aggregated worth of all of the transactions to all of the individuals. So your complete transaction is proven as invest-ment in your Type 26AS. Question is raised by IT division solely in case of mis-match. It’s advisable you and your spouse make appropriate disclosure of earnings from mutual funds in your respective ITRs and preserve correct documentation.

I began a brand new job from August 2020. Throughout April-July, I used to be as a self-employed skilled in the identical metropolis. To compute HRA exemption, do I embody hire paid for the entire 12 months or just for August 2020 – March 2021?
—Aditya
The least of the next is allowed as exemption in respect of HRA (i) an quantity equal to 40% of wage (50%, if home is located at Bombay, Calcutta, Delhi or Madras) (ii) HRA acquired by the worker in respect of the interval throughout which rental lodging is occupied by the worker throughout the earlier 12 months (iii) the surplus of hire paid over 10% of wage. Calculate the quantity of exempt HRA primarily based on precise hire for the interval throughout which the allowance is acquired.

The author is director, Nangia Andersen India. Ship your queries to fepersonalfinance@expressindia.com

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