• Captal gain tax on shares transfer

Dear Sir/madam,
 I am a NRI. My question is if I transfer my profitable equity shares to my wife, who is liable to pay capital gain tax, me or my wife when she sell them and is there any restrictions or penalty on selling them(by my wife) after transfer ?
Asked 2 years ago in Capital Gains Tax

You will be liable to pay Capital gain as it will be clubbed in your income. There are no restrictions on her selling them.

Ruchi Goel Anchal
CA, Gurgaon
525 Answers
16 Consultations

It depends how you are transferring.

If you are transferring as an off market sale. You will be liable to pay tax when you transfer. when your wife sells it in open market she needs to pay tax on her gain.

 

If you transfer as gift to wife then no tax on transfer from you to your wife and when your wife sells you need to pay tax on it as per the clubbing provision.

 

Hope you find the information helpful, if yes do rate if 5 and provide your valuable feedback for my improvement.

Thank you.

Naman Maloo
CA, Jaipur
4292 Answers
101 Consultations

- Gift by you to your wife is exempt. Draft proper gift deed.

- Sale by your wife would be chargeable to tax and clubbed in your hands

- Intermediary would be liable to deduct TDS u/s 195 assuming your wife residential status is also NRI

 

For detailed discussion you may opt for phone consultation.

Vivek Kumar Arora
CA, Delhi
4950 Answers
1105 Consultations

If you transfer as gift to wife then no tax on transfer from you to your wife and when your wife sells you need to pay tax on it as per the clubbing provision.

 

 

 

 

Prerna Peshori
CA, Pune
199 Answers
12 Consultations

Ask a Chartered Accountant

Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
  Ask a CA