Clubbing of Spouse Income

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Rajat (Querist)
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06 October 2008 Suppose Mr A gifts 100 shares of Reliance bought at 100 Rs to his wife(Rs 10K). 6 months later wife receives 1:1 bonus declared by Reliance. Post that she sells original 100 shares @ 40(Rs 4K). And later in the same year she sells the bonus 100 shares @ 50 (Rs 5K). If clubbing provisions are applicable, what profit/loss will be clubbed with husband Mr A and what will be income/loss for wife in her own A/c.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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06 October 2008 Bonus shares are the direct property of the wife and the capital gains arising out of that can not be clubbed into Husband's.

Rajat

Rajat (Querist)
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06 October 2008 Isnt this a loophole which can be easily misused by assessee.

In that case the capital loss will be clubbed with husband (as per clubbing provision), where as the capital profit on bonus shares will be solely of wife.

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