Share Transafer and Taxation

POSTED BY Sudhir Lad ON April 17, 2013 8:22 pm COMMENTS (5)

5 replies on this article “Share Transafer and Taxation”

  1. Dear Sudhir, a husband can gift to his wife & vice versa but important point here is clubing provisons which in your case nullify for the fact that holding period is more than 1Y. So even after earning positive return & thus having clubbing activated on the same, the amount is tax free to your wife & she need not to file tax return for this.

    Hope I’m clear to you. In case you are still in doubt, we can discuss it more.



  2. Dear Sudhir, please prepare a gift deed on a plain paper that she is gifting shares to you. Provide the details of shares & the transfer date in the gift deed. Both of you should sign & you should also write – I accept the gift.
    Please keep the record of her purchase of same shares to avoid any future issue.



    1. Sudhir Lad says:

      Someone told me that there cannot be a gift deed between husband and wife and this has to be treated as clubbable income.
      So the solution given was that my wife declare this in her return even if I sell the share after transfer.
      Now I am a bit confused.

  3. Sudhir Lad says:

    I am surprised. This question somehow is not getting posted at all.

    The question is like this.

    My wife has a DEMAT account with Religare and I have a DEMAT account with ICICI. I am not able to manage my wife’s portfolio. I intend to close that account and transfer all the shares in my name to my ICICI DEMAT account.

    She has not transacted in last FY so that way all her “sell” orders would qualify for Long Term Capital gain.

    If I transfer these shares to my account then does that impact taxation? Or I will continue with the original date of acquisition and even if I sell immediately after the transfer, it would still be long term capital gain.

  4. Dear Sudhir, what’s the query?



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