Off market transfer of shares

This query is : Resolved

RAHUL DUGAR (Querist)
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16 October 2011 Respected Sir/Madam

I OPERATE 3 DEMAT ACCOUNTS(MYSELF,MY WIFE AND MY RELATIVE).MY REALTIVE KNOWS THAT I OPERATE IT BUT HE DONT KNOW WHAT ARE THE HOLDING IN HIS DEMAT A/CS.ALL THE SHARES IN HIS A/C ARE PURCHASED BY ME WITH MY OWN MONEY.
ON 6.4.2010, I HAD TRANSFERRED LISTED SHARES WORTH720000(MARKET VALUE AS ON 6.4.2010)WHICH ARE STANDING IN MY REALTIVE`S ACCOUNT TO MY WIFE A/C TO THROUGH OFF MARKET SLIP. DUE TO THIS THERE EMERGED A LOAN OF720000 IN MY WIFE`S ACCOUNT.
I TOOK HIS SIGN ON TWO BLANK STAMP PAPERS ON 12.4.2010.
NOW, I DONT WANT TO PAY ANY AMOUNT OF WHITE MONEY THROUGH A/C PAYEE CHEQUES TO MY RELATIVE(by virtue of Sec 269SS,269T) AND AT THE SAME TIME I ALSO WANT TO CLEAR OFF THE DUES BY USING THOSE STAMP PAPERS.
TRANSFEROR DOESNOT SATISFIES THE CONDITIONS OF RELATIVE SPECIFIED U/S 56(2)(VI).

I WILL BE VERY GRATEFUL TO YOU IF YOU CAN SUGGEST ME THE WAY TO OVERCOME THIS SITUATION.
THANK YOU

With regards,
RAHUL DUGAR

Nitin Lakhmani

Nitin Lakhmani (Expert)
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17 October 2011 no way other than gift.

if that relative is your close one as specified u/s 56 then show it as a gift of 100% through transfer deed, so u can get benefit of COST OF PREVIOUS OWNER @ time of transfer of share.

or else up to Rs.50,000 to each of you & your wife p.a. no other way to escape it, except get back transfer but in that case you have to pay capital gain tax.

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