Gift of shares to wife

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When shares are gifted to a spouse, dividend income and capital gains are generally clubbed with the transferor's income under Section 64 of the Income Tax Act. Even if transactions appear in the spouse's AIS and Form 26AS, the income is taxable in the husband's ITR. TDS credit can be claimed by transferring it under Rule 37BA.

Atul R

Atul R (Querist)

19 May 2026 I had gifted some shares to my wife. She sold these shares and also received dividend on these shares. TDS was also deducted on the dividend. All these transactions are showing in her AIS and 26AS.

How do I treat the capital gain, dividend and TDS in IT return?

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

19 May 2026 Because the shares were a gift to the wife, the Clubbing of Income rules (Section 64) apply. Both the dividend income and the capital gains from the sale must be clubbed and taxed in the husband’s ITR. The TDS credit can be transferred from the wife to the husband under Rule 37BA so that the husband can claim it against his tax liability.

Atul R

Atul R (Querist)

19 May 2026 Thanks Mr. Sharma for your quick response. Can you please tell the procedure for transferring TDS credit?

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