In the case of Spouse A, the dividend will be split income unless it is an Excluded Amount. In the circumstances, the dividend will be an Excluded Amount as Spouse A holds shares that qualify as Excluded Shares. In the case of Spouse B, the dividend will be split income unless it is an Excluded Amount.
Can shares be transferred to another person?
Stocks can be given to a recipient as a gift whereby the recipient benefits from any gains in the stock’s price. Gifting stock from an existing brokerage account involves an electronic transfer of the shares to the recipients’ brokerage account.
How are shares of a company gifted to another person?
Shares owned by a person can be gifted to another person (relative or otherwise) by following a certain procedure. Since gifting constitutes a transfer, and the transfer is for no consideration, such a transfer can be carried out using the “off market transfer” mechanism. Delivery instruction slip (DIS)
Can You give your shares as a gift to someone?
The Gift Hold-Over Relief provides for an easy and tax free way to give away your shares as a gift to another person (not to a company!). The Hold-Over Relief does not exempt any of the chargeable gain, but instead postpones any tax liability.
Can a gift of shares be considered a chargeable gain?
The general rule is that when an individual makes a gift of a chargeable asset (e.g. shares in a company), this is considered to be a disposal which may give rise to a chargeable gain in the same way that a transfer in exchange for money would bring about.
Is the gift of shares to a relative taxable?
If the gift of shares is being made to a “relative” as defined by the Income Tax Act, it will not be subject to tax. Also if the value of shares is less than Rs 50,000, the same is not taxable in the hands of the donee, even if he is not a “relative” as per the Act.
