Planning to transfer equity portfolio in family accounts? Here’s the process and tax rules
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Transferring portfolio?
Are you looking for the process and tax implications of transferring an equity portfolio from your mother's demat account to another? Here is help for you, as reported by ETBureau.
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Can gift investments
Dilshad Billimoria, MD & Chief Financial Planner, Dilzer Consultants said that your mother can gift the investments from her demat account to your wife’s account.
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Taxation
The expert further mentioned that under Section 56(2)(x) of the Income Tax Act, 1961, gifts received from relatives are fully exempt from tax, regardless of the amount.
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Valid transfer
In this case, the gift is from the mother-in-law to the daughter-in-law without consideration and is treated as a valid transfer, the expert mentioned.
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Off-market process
The expert further said that for a transfer from the mother’s demat account to the wife’s demat account, please complete an off-market transfer using Delivery Instruction Slips (DIS) from the relevant demat account your wife holds.