Sudipto, a resident individual aged 54 years, gifted shares of an Indian company listed on a recognised stock exchange in India, to his friend Shanu…
CA Intermediate · Taxation · PYQS · September 2025
Sudipto, a resident individual aged 54 years, gifted shares of an Indian company listed on a recognised stock exchange in India, to his friend Shanu to help him financially on 01.04.2024. The gift deed states that the shares will be transferred back to Sudipto in the event of death of Shanu. The FMV of the shares on the date of transfer was - 54,00,000. Shanu received a gross dividend of 4,50,000 on these shares during the F.Y. 2024-25. Sudipto is engaged in the business of retail trade as proprietor. During the F.Y. 2021-22, he paid - 25,000 p.m. to his wife, Swati as salary, being the marketing in-charge. Swati does not have any professional qualification or experience for the job. This income was clubbed in the hands of Sudipto as per clubbing provisions in the F.Y. 2021-22. Swati started her MBA studies and did not get any salary from 01.04.2022 to 01.12.2024. She completed her MBA (Marketing) course on 01.12.2024 and again joined her husband's business and started getting - 55,000 p.m. as salary which is as per the market norms. During the F.Y. 2024-25, Sudipto paid - 54,000 as medical insurance premium by way of an account payee cheque for his senior citizen parents who are non-residents. Based on the above facts, answer the following multiple choice questions 4 to 6:
Suggested Answer and Working Notes:
Correct Answer: Option (B)
Dividend income shall be taxable in the hands of Shanu as clubbing provisions will not apply in this case.
Topics: Paper 3A: Income Tax Laws
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