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Capital gains on Sale of Transferred shares

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Ramesh

SVP

67 Points Posted on 27 July 2026

Lets say ones spouse is employed and as a consultant and indipendently paying tax.
Also that the spouse has a long term carried forweard loss from sale of securities (equity) in her tax filing. Can the husband transfer shared in his name to the wifes Demat and on doing so will sale of these shares falling under long term gains, be adjustable agains the carry forward loss in her tax filing or will it be taxable under the husbands capital gains as applicable ?

Replies (2)

Quick Summary

This discussion clarifies the tax implications of transferring shares to a spouse. If shares are gifted without consideration, capital gains are taxed in the husband's hands due to clubbing provisions and cannot offset the wife's carried-forward losses. To utilise the wife's losses, the transfer must be for adequate consideration, making the gains taxable in her name.

Aashok Kumar Sharma

Finance/Compliance Consultant

67414 Points Posted on 27 July 2026

If shares are transferred to a spouse without consideration (as a gift), the resulting capital gains are taxable in the husband's hands due to clubbing provisions and cannot be set off against the wife's carried-forward capital losses. To utilize the wife's losses, the transfer must be made for adequate consideration, making the gains taxable in the wife's hands.