|Author: Mahesh 28 Nov 2015 Member Level: Gold Points : 2 (Rs 2) Voting Score: 0|
I have seen cases where parents purchase the shares in the names of kids. Some grown ups take the shares in the name of their parents. So this is definitely possible. However the transaction where they have to sell, the need for the signature makes the transaction genuine. So I guess if that is forged or something then that becomes the criminal offense. And this in turn would be bad within the relationships. I'd say buying the shares or transferring the shares to someone won't be any legal issue. Selling without knowing or without giving any confirmation would be legal issue in my opinion. Consult with the broker online or even offline depending on how the shares were purchased.
|Author: Partha Kansabanik 28 Nov 2015 Member Level: Diamond Points : 2 (Rs 2) Voting Score: 0|
As par the Income Tax Act of India, if equities and units of equity-based mutual funds are sold after one year of purchase, the tax implication is absolutely NIL. In the present case, the shares of Whirlpool were purchased more than 20 years ago, there is no tax implication for anybody. Please note the provision to avoid any confusion/anxiety in this regard.
|Author: Kailash Kumar 29 Nov 2015 Member Level: Platinum Points : 3 (Rs 3) Voting Score: 0|
Apart from legal issues involved, if any, one practical approach may be to not to think too much about the issue. In case any notice is received for payment of any income tax in future, then it can very well be replied by furnishing the factual details. In case the shares were not actually purchased by any individual and there is no documentary evidence regarding the same, then there should not be any apprehension about tax liability etc.
|Author: Tara 25 Dec 2015 Member Level: Silver Points : 3 (Rs 3) Voting Score: 0|
Anybody can purchase shares in anybody's name and the person who is purchasing in others name for the legal course of action in future is better to inform and go ahead with the transaction. In normal course nobody does the transaction in others name without informing the concerned person.
As far as transactions are concerned, the tax structure applies if the income so derived from the transaction is eligible for tax. Normally any share transactions are done through stock brokers to avoid direct dealing unless and otherwise that person has got full knowledge of the market and the transaction