LC Saraf (Job) (36 Points)
24 May 2016
Manish Jain
(Chartered Accountant)
(119 Points)
Replied 25 May 2016
This can surely be done. However, the provisions of Sec 56 of Income Tax Act, 1961 will be attracted in this case in the hands of the transferee.
Also, the stamp duty is always payable on the higher of market value or the consideration value.
Hope this helps.
LC Saraf
(Job)
(36 Points)
Replied 25 May 2016
if we transfer shares to a relative without any consideration,
stamp duty liability arises or not ?
Manish Jain
(Chartered Accountant)
(119 Points)
Replied 27 May 2016
It does arise.
In such case, market value of the shares is deemed to be the full consideration.
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