02 December 2014
My Principal has a client trading in stock market. He transferred some shares of a company to his wife's demat a/c offmarket. The shares were held for more than one year by the client in his demat a/c. now the shares have been sold through his wife's a/c. Kindly guide me the accurate treatment of capital gain in the books of both the client.
02 December 2014
The shares were transferred without consideration? If yes...then the capital gain, if any arising out of selling the shares through wife's account shall be deemed to be the gain of husband.
02 December 2014
NO capital gain will arise under section 10(38) if STT has been paid. and if No capital gain then clubbing provisions become irrelevant.
03 December 2014
Thank you. The querist has stated that the trade was OFFMARKET... Please refer line 2 of the query.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
03 December 2014
Thanks a lot for the answer...
Querist :
Anonymous
Querist :
Anonymous
(Querist)
03 December 2014
Thanks a lot for the answer... but what will be the treatment of sale of share took place in wife's a/c? the share was trfd without any consideration.
03 December 2014
As I already mentioned that if it comes within the meaning of 10(38), then clubbing provision becomes irrelevant i.e. No impact on the Income of husband even after applying clubbing provisions