I had gifted a few stocks to my mother on her birthday in July, which she sold in January. Will she be taxed for this?
—Rakesh Verma
If an individual receives any property (other than immovable property), from any person during a financial year (FY) without consideration, the fair market value of which exceeds Rs.50,000, the transaction will be taxable under the head ‘Income from other sources’.
An exemption is available if it is received from a relative, which includes son or daughter. Accordingly, the shares received by your mother from you as gift shall not be taxable in her hands. But capital gains from subsequent sale shall be taxed in her hands.
