H 10 January 2021

Gifting of shares to parents

I intend to gift shares to my mother and request clarity on following:

1. Is gift deed mandatory for this transaction? If so, what is the format?

2. Whether the tax liability of dividends received by my parents on gifted shares shall be that of my parents or mine?

3. Can these shares be gifted back to me by my parents at a later stage? In such case, whether the tax implications will be different or same as gift of shares to relative?

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SIVARAMAPRASAD KAPPAGANTU (Retired Manager) 11 January 2021

You can transfer the shares in the name of your Parents. Now all shares are in D-mat form and therefore, your parents need to open D-mat account if not already done.
As long as the shares are in the name of your Parents and they receive the Dividends, the tax liability shall be theirs.
As and when they wish the shares to be given back to you they can transfer the shares to you

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 11 January 2021

no deed is required.

How to gift shares in India?

Step 1: Filing the DIS. The donor of the shares has to fill a delivery instruction slip (DIS) and submit it to the Depository Participant (DP). ...
Step 2: Filing Receipt Instruction. The receiver will have to fill a receipt instruction and submit it to his/her DP.

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