Capital Gain on sale of shares
This query is : Resolved
Ashwitha Rai
(Querist)
04 January 2011
Mr A & Mrs A were holding 1000 shares @ cost of Rs. 1 lakh, in a pvt ltd co., in joint capacity where Mr A was the 1st holder. In this case Mr A made whole of the investment in the year 2002. Mrs A is a housewife and does not have any income in any of the year.
In Dec 2010 Mr A sold whole 1000 shares for Rs. 30 lakhs. My query is
1)Can the capital gain arising from sale of these shares be divided among Mr A & Mrs A equally?
&
2)If not then why?
a)Is it because Mr A has invested wholly and Mrs A doesn't have any income?
OR
b)Is it because the investment was made jointly & Mr A is the 1st holder?
Please mention the provisions or citations.
In Dec 2010 Mr A sold whole 1000 shares for Rs. 30 lakhs. My query is
1)Can the capital gain arising from sale of these shares be divided among Mr A & Mrs A equally?
&
2)If not then why?
a)Is it because Mr A has invested wholly and Mrs A doesn't have any income?
OR
b)Is it because the investment was made jointly & Mr A is the 1st holder?
Please mention the provisions or citations.
Aditya Maheshwari
(Expert)
04 January 2011
It will be Mr. A only as Mrs. A name is for name sake only and entire investment is made by Mr. A.
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Ashwitha Rai
(Querist)
05 January 2011
Thank you sir, but if it was a gift receipt, then is there a possibility to divide the capital gain between Mr.A and Mrs A?
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Aditya Maheshwari
(Expert)
05 January 2011
Where did the gift come from? Not there in the query.
As it is if share is gifted to wife then clubbing provisions apply.
As it is if share is gifted to wife then clubbing provisions apply.
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