Capital Gain Tax on Off Market Shares

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This discussion clarifies capital gains tax implications when off-market shares are transferred from a husband to his spouse and then sold. The purchase date for calculating capital gains is the original date the husband acquired the shares. Crucially, the capital gain is taxable in the husband's hands due to clubbing provisions, even if the shares are sold from the spouse's demat account. If the husband has already filed his tax return, a revised return will be necessary to declare this gain.

Keyur

Keyur (Querist)

24 June 2024 Sir/Madam

I have one question regarding off market shares transferred to spouse account during the fy-2023-24. This share are sold by spouse after transferring shares from her husband.

Now we have to calculate capital gain tax of sale of off market transaction. In this case what is the date of purchase for calculating capital gain tax?? Date of purchase of Husband? or date transfer shares to her demate account??

And to whom capital gain is taxable ??? Husband or her spouse. shares are sold from her demate account.

thanks in advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

24 June 2024 It's date of purchase of husband.
Capital gains is taxable in the hands of husband under clubbing provisions.

Keyur

Keyur (Querist)

24 June 2024 Husband is filed his return of income then he has to file revised return??

Can i show capital gain in the hand of spouse instead of husband. Spouse income is below taxable limit!!!

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

24 June 2024 Yes, file revised return.
It can't be shown in spouse income.

Keyur

Keyur (Querist)

24 June 2024 thank you sir for prompt reply to me.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

24 June 2024 You are welcome...
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