Capital Gain
This query is : Resolved
14 January 2011
There are 3 partners A, B and C. They hold 900 equity shares in joint name in physical form. Now they wish to sell these shares. So, they transferred these shares in the name of A and Mrs. A, as they are having demat account in joint name. What will be the tax liability of A, B and C??? Mrs. A income is clubbed with Mr. A.
14 January 2011
Transfer of shares in A's name( Mrs. A is a joint Demat A/c holder only with Mr A) by A,B & C has been done just for the sake of bringing the commodity at a place from where it could be sold.
A, B and C will be liable for tax.
( it can be said a case of diversion of income.)
As, practically,there is no income arises to Mrs C from such transfer, question of clubbing of income will not arise.
A, B and C will be liable for tax.
( it can be said a case of diversion of income.)
As, practically,there is no income arises to Mrs C from such transfer, question of clubbing of income will not arise.
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16 January 2011
Will B and C will be liable for STCG or LTCG???
20 January 2011
Will B and C will be liable for STCG or LTCG???
21 January 2011
Yes, because they were also having beneficial interest in shares. CAPITAL GAIN WILL BE DISTRIBUTED IN THE PROPORTION OF HOLDING. IN THIS CASE IF ALL HAVE INVESTED EQUAL AMOUNT, 1/3RD OF PROFIT WILL BE ADDED IN THE INCOME OF A.B. & C .
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