Off market transfer of shares

Save Share

This query is : Resolved

RAHUL DUGAR (Querist)
Follow

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)
Follow

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.

Message likes : 1 times

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