Gujarati Bride's Gift: Bluechip Stocks Like RIL & Wipro

Gujarati bride's gift: Bluechip stocks like RIL & Wipro - Economic Times Page 1 of 4

Indiatimes The Times of India The Economic Times More Log In / Join FOLLOW ET:

Markets

Home Markets Stocks IPOs/FPOs Market Stats Live Technicals Commodities Forex Bonds Money Markets Definitions

04:04 PM | 05 Nov EOD SENSEX NIFTY GOLD (MCX) (Rs/10g.) USD/INR Login to Track your MARKET STATS 27,915.88 55.50 8,338.30 14.15 25,470.0 -493.0 61.42 0.01 Investment

You are here: Home > Collections > Gift Tax

Gujarati bride's gift: Bluechip stocks like RIL & Wipro Trend Mic

Maulik Vyas, ET Bureau May 29, 2009, 07.04am IST

MUMBAI: Not much has changed over the years at the archetypal Gujarati wedding — colour, hospitality, joie de vivre, sumptuous food and dandiya raas. Just one ingredient is now different: the bride's gift.

At a recent wedding in the city, an indulgent father decided to break with tradition. Instead of gold and diamonds, he gifted his daughter 100 shares of Reliance Industries. Gujarati bride's gift: Bluechip stocks like RIL & Wipro - Economic Times Page 2 of 4

1 Crore Term Best SIP Plans to Free Stock Guide Insurance Invest 2015 hdfclife.com/Click2Protect_Plus fundsindia.com/SIP equitymaster.com/2015_Free_Yea... Affordable Term Plan with Become Maha Crorepati, Invest Get 25 Years Celebration Copy Extra Life Option* and As Low As Rs.1000/Month Worth Rs 750 Free. Grab Your Accidental Cover. Through SIP Copy Here!

This is not a case in isolation. In the past, affluent Gujaratis gave away gold, land, four-wheelers and even cows when their daughters got married. Today, with gold prices shooting up by the day and blue-chips within reach, parents are opting for shares, bonds and even managed portfolio accounts.

Bhogilal Vanji, a Bhuj-based merchant, gifted 200 shares of Wipro, among other things, to his daughter on RELATED ARTICLES her wedding day. At one stroke, he dropped the idea of buying gold and put his money in the stock markets instead. Property & gold: When should you buy a house for your child? "When I started shopping for the wedding, gold prices were trading at record highs. The markets were still April 18, 2011 lukewarm and a lot of blue-chip stocks were available at throwaway prices. It seemed like a great idea to gift Fund flow to emerging markets will continue: my daughter shares of some good companies which would stand her in good stead when the markets looked Bassam Salem... up," he said. October 22, 2010 Kutch-based financial planner and MD of Parash Vallbhji Shah & Associates, Jay Shah told ET there are Tax relief & women other gift ideas too. "We have also seen bonds, capital protection funds, gold mutual funds and other May 7, 2006 structured instruments being gifted," he said. Of course, gold and other precious metals are being bought too. IN-DEPTH COVERAGE "It's just that newer and more practical options are being tried out," said Mr Shah.

Gift Tax Organisations too are choosing to gift shares of IT companies and banks and PSU bonds on festive occasions. "Recently, one of my clients gifted 100 shares of L&T at a wedding while another one presented 200 shares of Tata Steel for a naming ceremony," said Mr Shah, without revealing his clients' identities.

All of which begs the question: how much tax will this attract? PwC executive director and tax lawyer Sunil Lala said: "Rs 50,000 received by an individual or a family (Hindu Undivided Family) as a gift is exempt from gift tax. This also includes shares handed out as gifts." Gujarati bride's gift: Bluechip stocks like RIL & Wipro - Economic Times Page 3 of 4

Mumbai-based tax consultant NV Sharma added: "People who are active in the market are gifting in a big SPOTLIGHT way as tax liability is nil up to a certain amount." Clearly, gifting as a concept will never be the same in this part of the country. Tech Talks ICICI Lombard™ Insurance icicilombard.com/General_Insurance Get Health, Travel & Car Insurance Quotes w/ No.1 Indian Insurance Co.

FEATURED ARTICLES

Smartphone mkt in India: Samsung leads over Micromax Samsung Electronics expanded its lead over Micromax in India's smartphone mkt in Sept, while Nokia retained its third spot, ahead of Lava and Karbonn. How a two-year-old firm is IBM scaling down India Apple cuts online price of ◾ 'Asian mobile apps challenge tech giants like hitting a daily turnover of Rs business, MD Vanitha iPhone 5S to clear stocks; ties Apple, Google' 4,000 crore today Narayanan to return to US up with Amazon, Flipkart and ◾ Lava may become second largest local Snapdeal smartphone brand More:

Apple cuts online price of iPhone 5S to clear Apple Inc CEO Tim Cook fires back as stocks; ties up with Amazon, Flipkart and retailers block Pay Snapdeal Hyundai: Price war under way in US car India's first e-reader Wink unveiled, supporting market 15 languages BF Utilities rise on court verdict report Gujarati bride's gift: Bluechip stocks like RIL & Wipro - Economic Times Page 4 of 4

Fed warns of catastrophe if $14.3-trn debt limit not raised

More from The Economic Times More from the web • Are miserable days for business aircraft • Here Are 10 Skills You'll Need for Success in industry over? 04 Nov 2014 2020 Business Innovation by SAP

• The 13 highest-paying jobs for people who • Ambition isn’t achieved by chance or luck. don't want to sit at a desk all… 03 Sep 2014 See what it really takes to… SAP

• Understanding corporate world: Get hired for • The Single-Engine Global Economy Social what you have done, not what… 17 Oct 2014 Europe Journal

• How black money finds its way out of India, • Why we should all have Africa on our minds Standard Chartered and how it comes back as white 02 Nov 2014

Recommended by

Readers' opinions (3)

Sort by: Newest | Oldest

Jiggi (Bharuch) 29 May, 2009 11:00 AM I think the Father invested all money for gifts in shares and instead of real gifts like gold , he has gifted one more headache(shares) to her daughter.

suvarna kulkarni (Pune)

www.economictimes.com Advertise with us | Terms of Use | Privacy Policy | Feedback