Dear Experts,
I have a demat account where I am the first holder and my husband is the second holder and my bank account is linked to the demat for receiving dividends.
Recently my father gifted some shares and they were transferred to this demat account. I understand that gifts given to certain relatives like daughter, son , brother, sister are tax excempted. Will there be any tax implications for my husband since he is the second holder of the demat account. Please let us know.
Thanks,
Jaya
As your father has gifted the shares it will not be taxable for both of you. Income from gift is taxable for both of you but as per the rules dividend income received from Indian Companies are exempted from tax so this burden is also not there. You can enjoy your gift and its income unless you sell these shares. At that time you need to pay Income Tax on Capital Gain according to nature of Capital Gain.
Thanks
VIKAS VERMA & CO
New Delhi
Others
View Details
CAclubindia
