can i gift my stock to my spouse. will it attract income tax. if yes how much.
thanks
Yes, you can gift your stock holdings to your spouse in India. However, certain income tax rules will apply,
Gifts between spouses are exempt from gift tax under Income Tax Act, 1961. Therefore, you won’t have to pay any tax on transferring the stocks to your spouse. Even though the gift itself is tax-free, the income generated from the gifted stocks (e.g., dividends or capital gains on sale) will be clubbed with your income under Income Tax Act.
This means that any dividends received or capital gains realized by your spouse on these stocks will be considered your income and taxed as per your tax slab.
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What if you don’t gift and spend all by yourself?
Then normal provisions of income tax act will apply
Gifting stocks can have tax implications. When stocks are gifted in India, the recipient may be liable for income tax if the value exceeds ₹50,000 in a financial year. Stocks are taxed based on their fair market value at the time of transfer. Always consult a tax advisor for clarity.
Gifting stocks can attract income tax if the value of the stocks exceeds the exemption limit. According to Indian tax laws, any gift of stocks above subject to tax in the hands of the recipient, unless the gift is from a close relative.
In Dec 24, my wife gifted me some stocks through Zerodha gift system. Now these gifted stocks by my wife are showing in Tax P&L as Short term realised profit and Long term realised profit in her portfolio. As far as I know, there is no tax liability if shares are gifted to spouse. Still, if we have to pay the tax, the recipient of the shares has to pay it and not the person who has gifted it.
Is there anything we have failed to understand?