Some people tend to stay invested for the long-term and hold some shares for years. But if the share holder expires due to any unforeseen event, then the shares would be transferred to the legal heirs. Do you ever think that transmission of shares legally from your father, grand father attracts any tax?
The Indian Income Tax Act considers holding the shares for long term even though there is a huge capital gain, doesn’t attract capital gain tax. Only selling the capital asset on gain attracts tax.
But here in this case, as the shares are legally transmitted from their ancestors, there would be no capital gain tax in the hands of the legal heir. But he has to include that capital gain in the income tax return(ITR)Form claiming that gain was arised from their ancestors and they were legal heirs to that asset.
So if anyone of you have holdings from your grandfather, father and they were expired, if you forget to claim that amount, redeem the proceeds as per Indian tax laws where there is no capital gain tax on the legal heir except include that gain in the ITR Form.