New Delhi, May 27 -- While the term 'gift' is commonly understood as a 'present' given to someone, it also carries a specific legal meaning. Under Indian law, individuals are allowed to gift money, movable property, or immovable property to another person. This means shares purchased from the stock market can also be legally transferred as a gift. However, such gifts are governed by income tax rules, and shares are no exception.

Previously, the person making the gift was liable to pay tax under the provisions of the Gift Tax Act. However, after the abolition of the Act, no gift tax is payable by the sender.

The Income Tax Act also provides that capital gains arise when a capital asset is transferred. However, Section 47 of the Act speci...