Tax relief on inherited shares: Sebi floats proposal for smoother transfer

Sebi steps in to clear tax confusion over inherited shares, proposing a fix to stop nominees from being wrongly taxed before passing assets to heirs

What happens to your shares after you’re gone? For millions of new retail investors, that simple question has created a thorny legal and tax puzzle. Concerned about the fallout, Sebi has moved to sort it out by making a rare foray into direct tax policy.

 

With retail investors buying shares in large numbers, the market regulator has decided to intercede on their behalf to offer a substantial tax relief. What happens to the shares when the owner dies? The shares pass on to the legal heirs, correct. The market regulator, Securities and Exchange Board of India (Sebi), is not sanguine