Gift tax

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Querist : Anonymous

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Querist : Anonymous (Querist)
03 August 2016 I want to gift some stocks (held in demat format) to my wife on her birthday (about 5 lakhs net worth as of today). She is a teacher and files her returns independently.

In case there is a dividend declared on the gifted shares, do I need to show it under my income (as exempt income)? or my wife will show it as exempt income in her returns?

The question is more pertinent now that dividend above 10L is taxable...

Please clarify


03 August 2016 no any limit for gift from husband to wife.
exempt income viz. dividend will be clubbed in the income of husband.

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Querist : Anonymous

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Querist : Anonymous (Querist)
03 August 2016 Will the dividend income clubbed to husband even if wife is a independent earner and tax payer?

03 August 2016 yes, because she has received these shares out of gift...i.e. without consideration.

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Querist : Anonymous

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Querist : Anonymous (Querist)
04 August 2016 Thank you. For how many years the income has to be added to husbands income?
What happens if she sells (after a year so that no capital gains tax ) and buys something else?

04 August 2016 since long term capital gain is exempt...the exempt income will be added to husband..
after that for new asset, the income will cease to be clubbed.


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