According to a regulatory filing, Infosys founder N narayana murthy -Latest Updates, Photos, Videos are a click away, CLICK NOW">r narayana murthy recently gave his grandson Ekagrah Rohan Murty 15 lakh shares, or around Rs 240 crore.
Master Ekagrah Rohan Murty, the son of Rohan Narayana Murty, now owns 15 lakh shares, or 0.04 percent of Murthy's equity ownership, making him the company's youngest billionaire shareholder.
Based on the closing share price of Rs 1,602.3 per share of the corporation, the total value of the donated shares amounts to about Rs 240 crore.
Ekagrah is Narayana Murthy's third grandchild.
Master Ekagrah Rohan Murty, the son of Rohan Narayana Murty, now owns 15 lakh shares, or 0.04 percent of Murthy's equity ownership, making him the company's youngest billionaire shareholder.
Based on the closing share price of Rs 1,602.3 per share of the corporation, the total value of the donated shares amounts to about Rs 240 crore.
Ekagrah is Narayana Murthy's third grandchild.
The first two grandkids of UK prime minister Rishi Sunak are daughters of Akshata Murty.
While the details of this share transfer are yet unknown, gifts may be taxed in certain situations, just like other types of income. Tax exemptions, however, could be applicable in some gift situations.
Similarly, in january 2024, Azim Premji, the founder of Wipro, gave his two sons, Rishad and Tariq, 1.02 crore equity shares in the company.
While the details of this share transfer are yet unknown, gifts may be taxed in certain situations, just like other types of income. Tax exemptions, however, could be applicable in some gift situations.
Similarly, in january 2024, Azim Premji, the founder of Wipro, gave his two sons, Rishad and Tariq, 1.02 crore equity shares in the company.
What Rules Say On Gifting?
This is how gifts that are in the hands of the receiver are now taxed under Section 56 of the Income Tax Act;
As per a Moneycontrol study, presents include cash, immovable assets, and certain moveable properties that are obtained from non-relatives without or with inadequate consideration.
The amount of these donations is taxed in line with your applicable income tax bracket and reported as "income from other sources." When a gift is given to a minor, the tax liability is assumed by the parent or legal guardian.
As per a Moneycontrol study, presents include cash, immovable assets, and certain moveable properties that are obtained from non-relatives without or with inadequate consideration.
The amount of these donations is taxed in line with your applicable income tax bracket and reported as "income from other sources." When a gift is given to a minor, the tax liability is assumed by the parent or legal guardian.
Money: Taxation is triggered only when you receive money gifts (in cash, via cheque, etc.) totaling more than Rs 50,000 in a year. Below this threshold, no tax is applicable.
Therefore, if you receive money gifts amounting to Rs 75,000 within a year, the entire sum—not just the excess over Rs 50,000 (Rs 25,000)—will be subject to taxation.
Movable property: If you receive certain specified movable properties without consideration (i.e., without making any reciprocal payment) during a year, and their total fair market value surpasses Rs 50,000, the entire amount becomes taxable.
In cases where you receive specified movable properties for inadequate consideration (i.e. when you make some reciprocal payment), taxation applies to the difference between the aggregate fair market value and the consideration paid, provided this differential amount exceeds Rs 50,000. For example, if you receive jewelry and paintings worth Rs 20 lakh in total during a year and pay Rs 12 lakh for them, Rs 8 lakh will be taxable.
Therefore, if you receive money gifts amounting to Rs 75,000 within a year, the entire sum—not just the excess over Rs 50,000 (Rs 25,000)—will be subject to taxation.
Movable property: If you receive certain specified movable properties without consideration (i.e., without making any reciprocal payment) during a year, and their total fair market value surpasses Rs 50,000, the entire amount becomes taxable.
In cases where you receive specified movable properties for inadequate consideration (i.e. when you make some reciprocal payment), taxation applies to the difference between the aggregate fair market value and the consideration paid, provided this differential amount exceeds Rs 50,000. For example, if you receive jewelry and paintings worth Rs 20 lakh in total during a year and pay Rs 12 lakh for them, Rs 8 lakh will be taxable.
Immovable property: The full stamp duty value becomes taxable when you purchase any immovable property (land and/or building) without consideration (no reciprocal payment made) and its stamp duty value (the government's assessment of the property's value) exceeds Rs 50,000. For example, you would have to pay tax on the full amount if you get a property as a gift that has a stamp duty value of Rs 10 lakh.
When gifts remain untaxed: According to Moneycontrol research, taxes only apply in the above-mentioned cases when gifts are received from non-relatives and exceed the Rs 50,000 threshold (applying separately to money gifts, mobile goods, and immovable property). The Income Tax Act states that presents from family members are not subject to taxes, even if they have a monetary value.