Tax implications in case of transfer of shares off market

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Guest

Guest (Querist)

14 June 2016 I want to know the tax implications and accounting aspect (in books of both) with regard to following: 1. If shares are transferred via demat account from wife to husband through off market transaction? 2. Tax implication at the time of transfer and when the shares will be sold by husband after 1 yr (as LTCG)? 3. does any clubbing provisions apply here ? Pls let me know the solution for above cases?

Amol S Joglekar

Amol S Joglekar (Expert)
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17 June 2016 01. It is taxable in the hands of wife as the said transfer is without payment of STT (Security Transaction Tax)
02. After 1 year, in the hands of husband, Long Term Capital Gain would be exempt if STT would be paid for the then transfer
03. Clubbing provisions will not be attracted because, transfer of shares from wife to husband has been offered for taxation

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Guest

Guest (Querist)

17 June 2016 Sir, With regard to 1st point at what value LTCG will be considered as there is no actual transfer of any consideration from husband to wife.

Guest

Guest (Querist)

18 June 2016 Sir, with regard to 1st point at what value LTCG will be considered as there is no actual transfer of consideration from husband to wife.

Amol S Joglekar

Amol S Joglekar (Expert)
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18 June 2016 market value as on the date of transfer

Guest

Guest (Querist)

18 June 2016 Is there any other alternative if we dont want to consider the taxability in the hands of wife??

Amol S Joglekar

Amol S Joglekar (Expert)
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20 June 2016 from the details as given by you in the query...... no any room for any alternative course of action......

Guest

Guest (Querist)

20 June 2016 Sir, Can we apply gift provision ??

Amol S Joglekar

Amol S Joglekar (Expert)
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20 June 2016 Gifted?.....what is the reality? was it a transfer OR gift?
if it is a gift, then it will be taxed differently

Guest

Guest (Querist)

20 June 2016 It is a transfer. But can we consider it as gift from wife to husband???? & if we can consider what can be tax implication??

Amol S Joglekar

Amol S Joglekar (Expert)
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20 June 2016 No. If it is transfer, then how can it be treated as GIFT?

Guest

Guest (Querist)

20 June 2016 I want to know if the shares would have been given as gift what had been the tax implications and other requirements that are required to be complied????