A husband and wife transferred the same shares to each other through off-market demat transactions. The advice was to treat the transfers as a loan, with no tax liability or ITR disclosure required. Both spouses should submit AIS feedback stating the transactions are non-taxable.
03 July 2026
The husband transferred securities worth ₹9,84,783 to his wife's demat account through an off-market transfer. Subsequently, the wife transferred securities worth ₹9,89,983 back to the husband's demat account through another off-market transfer.
Please advise on the income tax implications of these transactions in their respective Income Tax Returns (ITRs), including whether any tax liability or disclosure requirements arise for either spouse.