If I transfer some amount to my wife's savings account and she does stock trading through her demat account and makes some short term capital gains, then,
1) Does my wife pay income tax on that short term gain or
2) I need to declare and pay income tax on that short term gain that my wife made?
PS: My wife is a house wife and has no other income from any source.
27 March 2012
The income earned by your wife shall be clubbed with your income as per Section 64(1)(iv), As per that section any income from transer of an asset without/inadequate consideration is clubbed in the hands of the transferor.