I owned some shares and mutual funds jointly with my wife, with her as the first holder. After her death, I transferred the shares and mutual funds in my name. If I sell the investments, what will be the tax implications for me?
Amit Maheshwari, Partner, Ashok Maheshwary and Associates says, "The gain or loss will have to capital gains tax for you. The gain or loss would be long-term or short-term depending upon the period of holding and the type of fund.Assuming the shares are listed and the funds are equity oriented, investments held for more than 12 months would lead to LTCG tax on gains beyond `1 lakh. The period of holding would include the time when these investments were in the name of your wife. The capital gains will be calculated by deducting cost of acquisition from the sales consideration. If the shares are unlisted, and if the investments have been held for more than two years,it would lead to LTCG tax, otherwise it will result in short-term capital gains tax. In case of debt funds, gains are considered long-term if investments are held for more than three years. Long-term gains on sale of unlisted securities and debt-oriented funds are taxable at 20% and shortterm gains are taxable as per applicable slab."