Gift tax applicability on gift of physical shares to wife

Originally posted by : Umesh Khemka
	My client wants to gift  unquoted physical shares to his wife. Is there any restrictions/ tax liability for the same. Regards, Umesh Khemka

There would be no tax liability on transfer of unlisted physical shares since gift from relatives are not considered as transfer.

Hello,
The gift of shares to your wife is not taxable under the provisions of the Income-tax Act 1961 (the Act).

However, in accordance with the provisions of the Act, the transfer of a capital asset without any consideration to a wife will be ignored and the capital gain arising on the sale of shares shall be chargeable to tax in your hands.