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?
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
Question – I want to invest Rs 1 Lakh to maximise my returns in next 4-5 years without investing in equity. Can you suggest me where can I park my funds?
Before starting any investment you are advised to prioritise your goals, as Investment Avenue will be decided based on time horizon available for investment. You should always calculate the inflation adjusted corpus and than required monthly investment for the goal and start investing thereafter. It is always advisable to invest as per the time horizon, goals, Risk taking ability and proper asset allocation. Investing without knowing the risk involved mostly lead to wrong investment and hence may result in loss. Since you are conservative type of investor you should invest in Long term gilt Mutual funds or Income Fund.
Recommended Gilt Mutual Fund : ICICI Prudential Long Term Gilt Fund, Franklin India Government Securities Fund Long Term plan.
Recommended Income Mutual Fund: ICICI Prudential Long term Fund, Franklin India Income Builder fund