Hi,
If Mr. X transfers an amount every month in his brother’s account and the brother invests that amount in shares. He sells some shares in less than one year of buying the shares and the others after one year completes.
My understanding is that, the profit on the shares sold in less than one year is taxable to Mr. X and there is no tax implication to anyone related to the investment in shares for more than one year.
Is that correct?
Thanks.