TaxTMI 
TaxTMI 
LTCG Grandfathered Applicability to receiver of gifted mutual fund units
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....TCG Grandfathered Applicability to receiver of gifted mutual fund units<br> Query (Issue) Started By: - Sthavar Dated:- 31-10-2025 Last Reply Date:- 13-12-2025 Income Tax<br>Got 1 Reply<br>Income Tax<br>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....
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.... while calculating my LTCG? Thanks in advance Sincerely, Reply By Ryan Vaz: The Reply: Yes, you are eligible for the grandfathering benefit on the Long-Term Capital Gains (LTCG) calculation, as you step into the shoes of the previous owner (your son) regarding the cost and period of holding. Applicable Law * Section 49(1): Deems the cost of acquisition of the gift to be the cost to ....
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....the previous owner. * Section 2(42A): Includes the holding period of the previous owner in determining whether the asset is Long-Term or Short-Term. * Section 55(2)(ac): Provides the mechanism for grandfathering the Cost of Acquisition (COA) for equity shares/funds acquired before 1st February 2018. * Section 112A: Governs the tax rate (12.5%) and exemption limit (Rs. 1.25 Lakhs) for LTCG on....
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.... equity mutual funds. Short Practical Answer Even though you received the gift in 2025, your "Date of Acquisition" for tax purposes is deemed to be 1st January 2010 (your sons purchase date). Therefore, you are entitled to use the Fair Market Value (FMV) as of 31st January 2018 as your cost of acquisition if it is higher than the original purchase price. This significantly lowers your taxable cap....
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....ital gains.<br> Discussion Forum - Knowledge Sharing ....