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Meet Grandpa, Who Made 4-Yr Old Grandson “Millionaire” [ But How? ]
Who doesn’t love gifts from Grandpa? For a 4-year-old, candies, chocolates, and toys are treasures beyond compare. But when your Grandpa happens to be Narayana Murthy, expect the unexpected.
Narayana Murthy, the founder of Infosys, recently made headlines by gifting shares of the company worth over Rs 240 crore to his four-month-old grandson, Ekagrah Rohan Murty. This generous gesture comes as Ekagrah is the third grandchild of Narayana and Sudha Murthy.
With a net worth of 470 crores USD, Narayana Murty is one of the richest grandparents in the world. He’s one of the seven co-founders of Infosys, ( a Indian multinational information technology company that provides business consulting, information technology and outsourcing services).
As of 2023, Infosys, valued at $81.52 billion, ranks as the 205th most valuable company globally by market capitalization. Recently, Narayana Murthy’s transfer of shares, equivalent to 0.04 per cent of Infosys’ stake to his Grandson was done in an off-market transaction, resulting in his own stake in Infosys reducing to 0.36 per cent from 0.40 per cent now.
However, this substantial gifting to his grandson might seem like something only the wealthy would do. But, in financial circles, it’s actually a strategic move commonly taken by billionaires to avoid taxes.
While the specifics of this share transfer remain undisclosed, it’s important to note that gifts are subject to taxation under certain conditions. In India, gifts from relatives, including those received through marriage or inheritance, are typically exempt from taxation. However, gifts from non-relatives exceeding Rs 50,000 annually are subject to taxation under the Income Tax Act.
Therefore, many experts see this strategic move by Narayana Murty of transferring his shares to his grandson as a means to manage tax liabilities. Such measures are not uncommon among wealthy individuals seeking to optimize their financial affairs.
Apart from Ekagrah Rohan Murty, Narayana Murthy and Sudha Murty have two other grandchildren, Krishna and Anoushka, who are the children of Akshata Murty and British Prime Minister Rishi Sunak.
