I will describe my query by giving an illustration.
Mr.A purchased the shares of ABC Limited through recognised stock exchange for Rs.900. Current market value of the share is Rs.400. Now if Mr.A transfers these shares to his spouse for Rs.400, then can it be said that the shares are transferred for adequate consideration ? Or does Mr.A has to transfer the shares to his spouse at Rs.900 only for avoiding clubbing provisions ?
Since there is no risk to transfer property to spouse and minor. So, clubbing is exist. If you want to tax saving and avoid clubbing then transfer to major son or daughter
Mr.A transfers these shares to his spouse for Rs.400 and it can be said that the shares are transferred for adequate consideration no clubbing provision apply for this transaction.
Saini Pati Shah & Co LLP, Chartered Accountants
Mumbai
CA Final
View Details
Shyam S Gupta and Company
New Delhi
CA Inter
View Details
M N Rao & Associates LLP
Vijayawada
CA Inter
View Details
CCI
Pro
CAclubindia
