Stamp duty and registration fees for gifting of equity share

This query is : Resolved

Tapan Kumar (Querist)
Follow

18 February 2016 Dear Professionals,

Please inform me the rate of stamp duty and registration fees for gifting of around 4.cr shares of a private company to his grand son.
is the normal rate of .25% is applicable, please let me know the total amount of duty and registration fees.
Thanks in advance..

CS Divesh Goyal

CS Divesh Goyal (Expert)
Follow

28 February 2016 Duty will be .25% on marker value of shares.

Tapan Kumar

Tapan Kumar (Querist)
Follow

20 May 2016 Dear Divesh,
its a gift for no consideration in between blood relative. Please suggest regarding the stamp duty. I think its not applicable

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
Follow

25 July 2025 Hey! Regarding **stamp duty and registration fees on gifting equity shares** (especially to a blood relative like a grandson), here’s the general position:

### Stamp Duty on Gift of Shares:

* Stamp duty on transfer of shares varies **state-wise** but generally is **0.25% on the market value** of shares.
* However, **gift transfers between specified blood relatives** (like grandson, son, daughter, spouse, parents, etc.) are often **exempted or charged at a concessional rate** depending on the **state Stamp Act**.
* Some states **exempt stamp duty for gift deeds executed between close relatives** under specified conditions.
* Registration fees may or may not apply depending on whether the gift deed is registered (usually not mandatory for shares, but advisable for evidence).

### Important Notes:

* Since it’s a **gift (no consideration)**, stamp duty may be **waived or reduced** for blood relatives in many states.
* The **exact exemption and rate depends on the state** where the shares are registered or where the gift deed is executed.
* You should check the **Stamp Act of that specific state** (e.g., Maharashtra, Delhi, Karnataka) for precise rates/exemptions.

### What you can do:

* Verify if your state provides exemption for gift deeds between blood relatives.
* Calculate 0.25% on the market value as a baseline.
* Consult local stamp duty rules or a local legal expert to confirm exemption.

If you want, I can help find the specific state's stamp duty rules for gifting shares. Which state is the company registered in?

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