I have transferred shares to wife against her gold as adequate consideration. what proof is to be shown against that we have interchanged gold vs shares pls explain thank you in advance

Income Tax Income from Capital Gains
1

I have transferred shares to wife against her gold as adequate consideration. what proof is to be shown against that we have interchanged gold vs shares and the same needs to be filled in ITR or not.pls explain thank you in advance

2

Hey @Deeban_Thangavelu,

In this case, the FMV of gold on the day the shares have been transferred will be considered as the sales value of shares, and on the basis of the period of holding, the same will be bifurcated as long-term or short-term capital gains.

Hope this helps!

3

Hi mam thanks for reply on the date of transfer against my purchase price i have to pay ltcg or scg and after transfer of shares if she sells the shares ltcg or stcg will be paid by my wife right?

4

Mam pls read below option 2 and say if i pay capital gain for my purchase price vs transfer date fmv after that transfer if my wife sells shares then clubbing of income will happen or not?as per option1 clubbing will happen wht abt option 2 ?

I. You could gift the shares to your wife In this situation you do not have to pay any capital gains tax. This is because a gift to your spouse does not constitute a transfer as defined in the Income Tax Act and hence no capital gains tax is chargeable to the transaction.

Your wife, who receives the gift, also does not have to pay any tax since a gift received from a spouse does not attract any income tax. However, any profit generated from the shares in future will be clubbed with your income for the year and will be taxed at your marginal rate of tax.

II. You could transfer the shares against payment Since the transfer will be offmarket and securities transaction tax will not be paid, the payment received by you will be subject to capital gains tax.

You can’t escape this by stating that the transfer was on a no-profit-no-loss basis. The profit (or loss) from the transaction would be calculated by taking into account the price at which you acquired the shares and the closing price of the shares on a recognised stock exchange on the date they were transferred to your wife’s account. The transfer of shares that were purchased by you less than a year ago will attract short-term capital gains tax, which will be charged at your marginal rate of tax. The transfer of shares that were purchased by you more than a year ago will be charged at 10%.