NRIs can gift shares to their parents without triggering capital gains tax, but the original acquisition cost remains relevant for future tax calculations.
India — direction and magnitude withheld
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Key takeaway
NRIs can gift Indian shares to resident parents without triggering immediate capital gains tax.
- Step 1 · The triggerNRIs can gift Indian shares to resident parents without triggering immediate capital gains tax.
- Step 2 · Knock-onThe parent's future sale of the shares is taxed using the NRI's original acquisition cost, deferring but not eliminating the tax liability.
- Step 3 · Reaches youDemand for Indian tax advisory and chartered accountancy services rises as families seek to structure gifts and document cost bases efficiently, impacting SME advisory workloads and revenue.
The trigger is reported by the source below. The steps that follow are Branch²’s traced reasoning — how the shock could reach a business like yours, not a prediction.
Source: Economic Times Top Stories
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