I differ to advice of @ Rahul
For short – term / long – term IT implications here is what a CA would have told you only if you would have consulted right professional before coming to us giving the brief colur of family Laws (means the right forum to have asked this question is not Family law) J
However since you have come here;
Suggested scenario 1:
Gift the shares to your wife mentioning same in material records of MCD proceedings.
Reasoning:
A. In this situation you do not have to pay any capital gains tax. This is because a gift to your spouse does not constitute a transfer as defined in the Income Tax Act and hence no capital gains tax is chargeable to the transaction.
B. Your wife, who receives the gift, also does not have to pay any tax since a gift received from a spouse does not attract any income tax. However any profit generated from the shares in future will be clubbed with your income for the year ending and will be taxed at your marginal rate of tax. Go for this option if MCD cooling-period is delayed for 12 months as that way for IT purposes legally she ramins your wife for getting maximum bang on a/c of marginal taxation J
Suggested scenario 2:
Transfer the shares against payments mentioning same in material records of MCD proceedings. Since the transfer will be off-market hence securities transaction tax will not be paid however the payment received by you will be subject to capital gains tax.
Reasoning:
A. A obvious question arise on profit-loss when this scenario one opts in reference to query. Hence here note the profit-loss from the transaction would be calculated by taking into account the price at which you acquired the shares and the closing price of the shares by a recognised stock exchange on the date they were transferred to your wife’s account. Mind it your query states 10 years ago such joint dealings came to your kitty, hence read next!
B. However there is a catch here; the transfer of shares that were purchased by you less than a year ago will attract short-term capital gains tax which will be charged at your marginal rate of tax. Whereas the transfer of shares that were purchased by you more than a year ago will be charged at 10% flat or 20% after indexation whichever is more beneficial for you is our view.
[Now rush to your favourite CA and make either of the above suggested scenarios actuated before the pricing of the Stock takes swing either side as this is said on pure commercial valuation of appreciation of long term family assets point of view at the time of such sudden liquidation by one holder J]
