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EM Nair (Finance Manager)     28 February 2015

Transfer of shares to wife

Facts: I have some shares of Indian companies in my demat account opened through HDFC PMS.  The capital gains, if any, on these are mostly “long-term” as I have held these for more than 1 year, making it exempt from  Some of these have incurred losses too.  I am a non-Resident and do not file Tax returns as I have no taxable income in India.

I would like to transfer these shares into my wife’s demat account.  She holds a trading account with SIB on “Resident” basis, and files ITRs.

 Question:  What are the tax implications on this transfer in my hands / in my wife’s hands?  Does the transfer attract any Gift or other Taxes? How is the Capital Gains on subsequent sale of these shares calculated in my wife’s account? 

Much appreciate any advise or directions on the above.


 3 Replies

Kapil Chandna (Lawyer at Supreme Court of India)     28 February 2015

Dear, Please call CA Karan Chandna at 9871563826.... Kapil Chandna Adv 9899011450

EM Nair (Finance Manager)     28 February 2015

Also please enlighten me whether the transfer between demat accounts should be termed as a "Gift" or "off-Market trade" from a tax point of view.


You will need a formally registered gift deed to treat the shares as gift. Otherwise that can be treated as off-market deal.

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