Financial Daily from THE HINDU group of publications
Sunday, Jan 29, 2006
Financial Daily from THE HINDU group of publications Sunday, Jan 29, 2006 |
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Investment World
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Income Tax Columns - Tax Talk Market-savvy housewife T. Banusekar
I AM a housewife and I do not have any independent sources of income. I have, however, been buying shares for the last two years. This investment in shares was made out of money given to me by my husband out of his sources and by my son who is non-resident. All the shares have been purchased with me as the first holder of shares and my husband as the second. I have so far not filed any tax returns. Is it necessary for me to file the same even if I do not earn a capital gain? Can the amount given to me by my husband and son be treated as a gift? What are the tax implications of the same? If I sell the shares what will be the tax implications? G. Ramani Reply The sums given by your husband and son should either be a loan from them to you or should be gifts, which are received from them. In any case, there will be no tax implications when you receive the same from your husband and son. No return needs to be filed by you if you do not have income, which exceeds the maximum amount not chargeable to tax. On sale of the shares, the capital gain will be chargeable to tax. You may note that if the amount given to you by your husband is in the form of a gift and not as a loan the gain if any arising from sale of shares purchased out of such gifted funds will have to be included as his income and offered to tax in his hands.
Mail your queries to taxtalk@thehindu.co.in or by post to Tax Talk', Business Line, Kasturi Buildings, 859, Anna Salai, Chennai-600002.
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