Can Gifted shares be gifted back to the donor?

This query is : Resolved

sakshi jain (Querist)
Follow

12 June 2020 Mother has gifted equity shares as gift in FY 18-19 to her 2 daughters, now she wishes to get a part of those gifts back. Is it legal to gift back the shares to their mother again in FY 20-21?

Act no where has a restriction? But does it raises a concern on intent of the transaction?
Has there ever been a case law supporting/rejecting such transaction?

Look forward to your responses.

Thanks
CA Sakshi

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

12 June 2020 Yes, it's legal to gift back the shares to mother again.
It will be considered as fresh gift. Gift to relative exempt. No tax implications or tax avoidance in such gifts, hence no problem.

Message likes : 1 times

sakshi jain

sakshi jain (Querist)
Follow

12 June 2020 Thanku Sir for the response.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

12 June 2020 Welcome............

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

venkanna setty

shubham agrawal

R.Prashanth

Nilesh Matekar

Jayesh Pipalwa

Subscribe Now

Can Gifted shares be gifted back to the donor?

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA