Tax liability of Director after transfer his shares to employee
This query is : Resolved
JITENDRA RAMESH MORE
(Querist)
11 November 2021
Dear Sir\Madam,
I request you to please guide me on the above subject i.e. the Director wants to transfer his shares in the name of his employees in free of cost as he wants to retire from company. So my question is any tax liability arise to the director for transferring his shares to employees under the head of capital gains?
I request you to please guide me on the above subject i.e. the Director wants to transfer his shares in the name of his employees in free of cost as he wants to retire from company. So my question is any tax liability arise to the director for transferring his shares to employees under the head of capital gains?
CA R SEETHARAMAN
(Expert)
11 November 2021
The transfer is without any consideration hence tax liability under capital gains will not arise to the director. Such transfer will be considered as gift and if it exceeds Rs 50,000 per employee it's taxable in the hands of employees.
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