A gift can be made in the form of cash, real estate, or moveable property. It's critical to comprehend the tax ramifications, make appropriate disclosures on your tax return, and keep track of your records.
In the hands of the gift's giver, there are tax implications.

The sender is not obligated to pay any tax on gifts since the Gift Tax Act (GTA) was repealed.

Capital Gains accrue when a Capital Asset is transferred, according to the Income Tax Act. Section 47, on the other hand, expressly excludes the term "gift" from the meaning of "transfer." As a result, the sender of a gift is exempt from paying income tax on the transaction.

In the hands of the gift recipient, there are tax implications.
On receiving the gift:

Under Section 56(2) of the Income Tax Act, a gift of movable property, such as shares, ETFs, mutual funds, jewelry, drawings, and so on, made without consideration and with a fair market value of more than INR 50,000 is taxable in the recipient's hands. Such income should be declared in the Income Tax Return under the heading 'Income from Other Sources,' and tax should be paid at slab rates.

Taxes on stock gifts are deductible in the following circumstances:
- Recipient of a present from a relative (including siblings, spouse, and lineal ascendants or descendants)
- On the occasion of a wedding, one individual receives a present.
- As a result of an inheritance, I received a gift.
Regarding the gift's sale:
The sale of shares, ETFs, mutual funds, and other assets acquired as a gift would be taxable as income from capital gains. The beneficiary must submit Form ITR-2 and pay tax at the appropriate rate.

The holding period would be calculated from the date of acquisition by the prior owner until the date of sale to ascertain the nature of Capital Gains, whether STCG or LTCG. To calculate capital gains, the previous owner's purchase price is used as the cost of the acquisition of the capital asset.
Because there is a potential of inspection by the tax department if the gift amount is large, the donor and recipient must keep suitable paperwork such as a gift deed to justify the legitimacy of the gift transaction.

*Note: The gift transaction will be entered at the closing price of the stock on the day the transfer of the stocks occurs at SS Corporate to calculate the P&L and purchase averages. The sender of the gift's holding will be closed at the stock's previous closing price, and the average price for the receiver of the shares will be the same previous closing price on the day the transfer is completed.