Gifting of shares of private limited company
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
19 January 2013
We have outstanding loans from shareholders of a pvt limited company which we want to convert into equity share capital of the company. My query
a) If one shareholder (A) transfers his entire shareholding through a gift deed to other shareholder (B) then whether he is liable for any tax in India ?
b) What if company issues equity shares to shareholder (B) against the loan outstanding due to shareholder (A) based on the consent from shareholder (A). Does it amount to waiver of liability and liable for tax in a pvt ltd company?
a) If one shareholder (A) transfers his entire shareholding through a gift deed to other shareholder (B) then whether he is liable for any tax in India ?
b) What if company issues equity shares to shareholder (B) against the loan outstanding due to shareholder (A) based on the consent from shareholder (A). Does it amount to waiver of liability and liable for tax in a pvt ltd company?
19 January 2013
a).Share Holder B is liable if fair market value of shares exceed Rs. 50000 and A is not his relative.
.
b) Shares can not be issued by the company
to B on behalf of A without receiving any consideration and consent of A is not a good consideration.
.
b) Shares can not be issued by the company
to B on behalf of A without receiving any consideration and consent of A is not a good consideration.
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