sale of shares of individual status in huf account

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D J Gangadhara Guptha (Querist)
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17 July 2010 my client sold shares belonging to individual status in his huf account by offmarket transfer. can his shares sold be exempt from tax (held for more than one year)

Rakesh Khanna

Rakesh Khanna (Expert)
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17 July 2010 Your query is not comprehensive.
How the shares have been sold in HUF?
Please give details of the transaction & mention in whose hands you are looking for the exemption?

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D J Gangadhara Guptha

D J Gangadhara Guptha (Querist)
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17 July 2010 sir,
my client had shares in his individual status.He did not have trading account with stock broker in this status. However, he is having trading account in his HUF status.He transferred shares in individual status to his HUF demat account by off market . shares of individual were sold in HUf trading account and the sales amount transferred to individual status.Can in his individual status exemt U/s 10 can be claimed as the shares were held for more than one year.in individual status

Rakesh Khanna

Rakesh Khanna (Expert)
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18 July 2010 When the shares are transferred to HUF by the individual, the transfer is complete.Since the transaction has not been routed thru recognised stock exchange the individual cannot claim the exemption.

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