Capital Gain

[Siddharth Singh]

A NRI is holding shares in Indian (Private) Company for more than 12 months. Now he wants to transfer 50% of his holding to his NRI wife. The same could be for consideration or by way of gift. My query is whether the NRI required to pay any tax in India if he gets any capital gain from the above if he (i) trasnfers it for consideration or (ii) transfer as gift .

Also will he be required to file his tax return in India.

Thanks

[Rama Krishana]

As per the provisions of Section 56 of the Income Tax, a Gift from husband to wife or wife to husband is not taxable.

AI Summary

Gift between spouses non-taxable under Income Tax provisions, so NRI share transfer by gift attracts no tax liability. An NRI asked whether transferring 50% of shares to his NRI wife for consideration or by gift would attract tax or require filing; the sole reply stated that a gift between husband and wife is not taxable under the Income Tax provisions, and did not address transfer for consideration or filing obligations.