Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

capital gain tax on share transfer

21 December 2018

If I transfer my shares from my demat account to my wife demat account...how 'long term capital gain' will be charged...in my account as well as in my wife demat account.

Reply
Follow
Share

9 Replies

sahil aggarwal (51 Points)
Replied 21 December 2018

is it a gift or is it a transfer for consideration???

Natraj Vaithianathan (31 Points)
Replied 21 December 2018

If it is a gift-any extra charges I have to pay?

sahil aggarwal (51 Points)
Replied 21 December 2018

no it is not treated as a transfer in your hand u/s 47. and it is not treated as income from other sources u/s 56(2)(x) in wife's hand as she is covered under the definition of relative

Natraj Vaithianathan (31 Points)
Replied 21 December 2018

so how capital gain tax have to be paid

sahil aggarwal (51 Points)
Replied 21 December 2018

sir there is no capital gain in your hand as this transaction is not assessible under capital gains. there is no capital gain. for capital gain there has to be a transfer but there is no transfer in this case u/s47 thi

Natraj Vaithianathan (31 Points)
Replied 21 December 2018

once after transfer of shares to my wife account,from which price point the ltcg will be calculated in my wife account(for long term capital gain how to calculate)..kindly reply

sahil aggarwal (51 Points)
Replied 21 December 2018

it is not ltcg for ur wife sir

Natraj Vaithianathan (31 Points)
Replied 21 December 2018

suppose if I am selling the shares from my demat account and buying same shares in my wife account-then my wife is liable to pay ltcg?and she is not working so can I get tax exception of 2.5 lakhs of profit as she is not working anywhere and not getting any income apart from this shares profit