Personal Finance Queries For The Day (06-05-2019)

Personal finance queries responded by industry & subject-matter experts.

Ashok Shah - 06 May 2019, Nasik: I want to transfer some stocks from our joint Demat a/c (I am primary holder) to my wife's sole Demat A/c. What will be tax treatment to both of us?

It seems that you have funded the purchase of the shares and name of your wife is added for the sake of convenience. Since shares would be transferred by way of a gift as per section 47(iii) of the Income-tax Act, any transfer of capital asset under a gift is not regarded as a transfer. Accordingly, there will not be any tax in your hand at the time of transfer.

Further, gift received by your wife from you will also be exempt since you are relative as per section 56 of the Act. However, since shares are gifted, as per section 64, any income accruing from such shares (i.e., dividend income, the capital gain on sale) would be taxable in your hands., SECUNDERABAD, RAMAMURTHY: I am over 80, my TDS deduction is less than 40,000, & I am not in the taxable limit. Is it necessary for me to file IT return? Please advise.

An Individual is liable to file a return of income only if total income (before any deduction of LIC, PPF, mediclaim, etc.) during the year exceeds the maximum amount which is not chargeable to tax. You being a super senior citizen, income up to 5,00,000/- is not liable to tax, accordingly, you are not required to file a return of income. However, to claim a refund of TDS deducted, you are advised to file return though you are not mandatorily required under the Act.