Home > Money > Question
Need Expert Advice?Our Gurus Can Help

Should I Be Concerned About Clubbing of Income if My Wife Sells the Shares I Transferred to Her?

Samraat

Samraat Jadhav  |2088 Answers  |Ask -

Stock Market Expert - Answered on Aug 16, 2024

Samraat Jadhav is the founder of Prosperity Wealth Adviser.
He is a SEBI-registered investment and research analyst and has over 18 years of experience in managing high-end portfolios.
A management graduate from XLRI-Jamshedpur, Jadhav specialises in portfolio management, investment banking, financial planning, derivatives, equities and capital markets.... more
Asked by Anonymous - Aug 15, 2024Hindi
Listen
Money

If i transfer equity shares to my wife and when she sells the stocks i undersyand that clubbing will apply and it will be taxed in my name . Now when my wife reinvests this amount and sells it again now in this scenario will clubbing of income apply or will it now be taxed under her name..

Ans: you need to transfer shares as Gift and the capital gain after selling of shares will be taxed to your wife
Asked on - Aug 16, 2024 | Answered on Aug 16, 2024
Listen
Thanks for your reply ..if you can please answer second part of myy query is If i transfer equity shares to my wife as GIFT and when she sells the stocks i understand that clubbing will apply and it will be taxed in my name . Now when my wife reinvests this amount in equity [ full amount ] and sells it again now in this scenario will clubbing of income apply or will it now be taxed under her name..
Ans: it will apply and your wife will be taxed
Asked on - Aug 16, 2024 | Answered on Aug 19, 2024
Listen
Thanks ..Please correct i have read in some articles that in the first scenario [ Husband gifts shares to wife and wife sells ] Clubbing will apply and income will be added to husband return and not wife . In the second scenario wise invests all the amount in equity after selling and when this is again sold will clubbing apply or now in this case it will be purely wife income for taxation with no connection to husband.
Ans: in this confusion, i would recommend you to consult your CA.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
Money

You may like to see similar questions and answers below

Latest Questions
Milind

Milind Vadjikar  |599 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Nov 09, 2024

Asked by Anonymous - Nov 09, 2024Hindi
Listen
Prof Suvasish

Prof Suvasish Mukhopadhyay  |36 Answers  |Ask -

Career Counsellor - Answered on Nov 09, 2024

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x