Dear Experts,
My son Gifted equity mutual Funds to me on 15 October, 2025, which he bought on 1st January 2010.
When I redeem the mutual fund units, will I get the advantage of grandfathered cost while calculating my LTCG?
Thanks in advance
Sincerely,
Donor-acquired units before 31 Jan 2018 inherit donor cost; use higher of purchase or 31 Jan FMV - Section 112A If the units were originally acquired by the donor before 31 January 2018, the recipient inherits the donor's cost of acquisition for tax purposes; for grandfathering the relevant benchmark is the higher of actual purchase cost or the fair market value as of 31 January 2018. Therefore when the recipient redeems the units, long-term capital gain should be computed using that grandfathered base (if higher), and tax will be charged under the current LTCG regime (10% on gains exceeding the ?100,000 annual exemption) applicable to listed equity mutual funds. (AI Summary)
TaxTMI 
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