Gift Provision

This query is : Resolved

padam singhvi (Querist)
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24 February 2011 Let me know that,Gift transferd by husband to wife (in the nature of eq share) without consideration , which mkt value was 6 lac but share value was shown under husband book was 3 lac, now after holding 2-3 month wife sold to it with Rs. 6,25,000/- discuess tax impletaion. (note holding period in hands of husband was more than 1 years.

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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25 February 2011 As per section 64(1)(iv)of the Income TAx Act, where an asset is transferred to his spouse by an individual directly or indirectly, otherwise than for adequate consideration any income from such assest is deemed to be the inncome of the transferor.

In you case, shares are held for morethan a year and profit earned on such sale is 3.25 lacs. If you have sold the shares through stock exchange and stt is paid, there will be no tax in the hands of the wife