I want to gift shares to my wife. Will the dividend income from these gifted shares be considered as her income or will it be clubbed with my income?
Hello @Sundeep_Mallya ,
Any gift which is received from relative is exempt in the hands of recipient under Income Tax Act, 1961.
Accordingly, the shares which are gifted by you to your wife shall not be taxable in the hands of your wife.
But, any dividend income arising out of gifted shares shall be clubbed in the hands of donor when the recipient is a minor child or spouse.
So, the dividend income will be clubbed in your income.
For complete guide of transfer & gifting of shares, refer the below article:
Hope it helps!