New Delhi, March 20 -- Infosys co-founder and chairman emeritus NR Narayana Murthy has gifted Infosys shares worth Rs.240 crore to his four-month-old grandson, Ekagrah, who now holds a 0.04% stake in the company.

This gesture follows the tradition of grandparents gifting shares, gold, cash, and other assets, but this raises questions about the tax implications for both the giver and the receiver.

There is no tax incidence in the hands of recipient, whether minor or an adult, if the gift is from a relative.

Should the gift come from a non-relative and exceed Rs.50,000 in value, it would be taxed under income from other sources. For minors, this income would be combined with that of the parent who earns more, according to section 64 of t...