What are the Capital Gain tax implications of transferring assets to a spouse or children?

In India, the transfer of assets to a spouse or children may have certain tax implications related to capital gains. Here are some key points to consider:

1. Transfer to Spouse: If you transfer capital assets to your spouse, it is considered a transfer without consideration. In such cases, any income arising from the transferred assets, including capital gains, will be clubbed with your income and taxed accordingly. The provisions of clubbing of income prevent the tax benefits of transferring assets to a spouse solely for the purpose of reducing tax liability.

2. Transfer to Minor Child: If you transfer capital assets to your minor child, any income arising from those assets, including capital gains, will be clubbed with your income and taxed at your applicable tax rates. However, if the transferred assets generate income above a certain threshold (currently set at INR 1,500,000), it will be taxed separately in the hands of the minor child at the applicable tax rates.

It's important to note that the tax implications mentioned above are subject to specific provisions of the Income Tax Act, and it is advisable to consult with a tax professional or refer to the Indian tax authorities for precise and uptodate information regarding the transfer of assets to a spouse or children and the associated tax implications.