CNBC Your Money: Transfer of shares and Tax treatment on the same

Dear Sir,


Can I sell equity shares of my brother in my trading account and if yes what is the tax treatment for these shares for me and my brother. Whether it will be long term capital gain or short term capital gain. Can I gift the shares to my spouse and what are the formalities for that?
Deepak

Answer:

Dear Deepak,
You are trying to do things in a very convoluted manner just to avoid opening a trading account. You will need to treat the transfer of shares to your brother as a gift and when he sells it in the market after paying the STT the capital gains will be exempt in his hands if the shares had been held by you for more than 12 months. He can then gift the sale proceeds to you. No tax anywhere in the transfer. It’s still a very convoluted manner just to avoid opening a trading account

CNBC Personal Finance Cornor : Am I eligible for tax deduction under Section 80E?

Shiv Rajan
Professional
Chennai
Age: 49 years
I am co-borrower for education loan with my son. The loan is worth Rs. 4 lakhs. Am I eligible for tax deduction under Section 80E?

The interest paid on education loan is eligible for Tax deduction as per section 80E of Income Tax Act, 1961. Loan should be taken by an individual for pursuing higher education of self, spouse or his/her children. Hence you are eligible for tax deduction under section 80E of Income tax on interest paid on such loan.

Zee Business Money Guru: Kindly advise whether I am not eligible for 80C benefit?

I had paid premium of Rs. 35000/- under two policies purchased in the name of My Son who is trading business in electrical goods on small scale and paid premium by act payee chq from my account. By branch manager is not allowing for 80C benefit saying he is not dependent on you. Kindly advise whether I am not eligible for 80C benefit.
Sunil Ailani

As per the provisions of Income Tax Act,1961 a person can avail deduction u/s 80 C of the Act which will be equal to the amount paid as premium on Life insurance for Self,spouse,children (major or minor, dependent or independent).Accordingly you are very much eligible to claim and avail the deduction U/s 80C. If your employer refuses to provide it you can claim it in your IT return. But better course is to get your employer to refuse in writing.

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