Can Gifted shares be gifted back to the donor?
This query is : Resolved
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
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
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.
It will be considered as fresh gift. Gift to relative exempt. No tax implications or tax avoidance in such gifts, hence no problem.
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12 June 2020
Thanku Sir for the response.
12 June 2020
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