Inherited Shares? Calculate Capital Gains & Gift Them Easily

• Learn how to calculate capital gains on inherited shares, especially when cost details are missing.
• Use the previous owner's cost or the market price on January 31, 2018, for LTCG calculation.
• Bonus shares allotted after January 31, 2018, have a nil cost for capital gains.
• Gifting shares to relatives like daughters has no immediate tax implications for the giver or receiver.
• A gift deed is advisable for documentation when transferring shares; minor's income may be clubbed.

Key Questions Answered

How does gifting shares impact future tax liabilities?

Gifting shares to certain relatives, like parents, does not create an immediate tax implication for the recipient.

What if inherited shares lack clear acquisition dates?

If inherited shares lack clear acquisition dates, the market price on January 31, 2018, can be used as the cost for computing long-term capital gains.

Could bonus shares affect capital gains calculations?

Yes, bonus shares can affect capital gains calculations, as their cost basis for tax purposes can be nil if allotted after January 31, 2018.