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