Sale of shares
This query is : Resolved
05 October 2009
Mr X, brother of Mr y holds some shares in physical form.Mr X is an NRI , but has demat a/c ( without trading facility).Mr Y has demat with trading facility , so Mr X requests Mr Y to get the shares converted in demat form & sell them in Indian Market.Mr Y performs the same for Mr Y.The entire sale proceeds of shares sold by Mr Y , is transferred by Mr Y to Mr X. Hence is it necessary for Mr Y to show this sale of shares in his return of income , as Mr Y does not file return of income due to his NRI status ?
05 October 2009
Dear Shweta,
Could you plesae confirm that on what basis share in physical form lying with Mr. X. have been converted in demat form of Mr.Y and Mr Y performed the request of Mr. X to sell the same in indian market?
As well residential status of Mr. Y ?
Could you plesae confirm that on what basis share in physical form lying with Mr. X. have been converted in demat form of Mr.Y and Mr Y performed the request of Mr. X to sell the same in indian market?
As well residential status of Mr. Y ?
06 October 2009
in my opinion
as per the provisions of section 5 any income accrue or arise in india or received or deemed to be received in india is taxable in the hands of every person.in context of the provision mr x trfs his shares it will be deemed his shares has been transfered to mr y and mr y has become the owner of such shares, further if he is recipient of income on the sale of such share such income will be taxable in the hands of mr y not in the hand of x
as per the provisions of section 5 any income accrue or arise in india or received or deemed to be received in india is taxable in the hands of every person.in context of the provision mr x trfs his shares it will be deemed his shares has been transfered to mr y and mr y has become the owner of such shares, further if he is recipient of income on the sale of such share such income will be taxable in the hands of mr y not in the hand of x
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