Section 56
This query is : Resolved
23 June 2011
Whether isuue of share to relatives is covered u/s 56 of income tax act from point of view of inadequate consideration
CA PARAS BAFNA
(Expert)
23 June 2011
A company can not issue shares to its relatives as company is not a real person.
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However gifts of shares can be made by an Individual to his relatives.
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Gift of shares of market value above Rs. 50000/ to a person who is not a relative,
is taxable in the hands of the recipient.
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However gifts of shares can be made by an Individual to his relatives.
*
Gift of shares of market value above Rs. 50000/ to a person who is not a relative,
is taxable in the hands of the recipient.
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