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Transer of share of private limited company

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(Querist)
11 April 2015 Dear Expert
If someone wants to transfer his share in a private Limited company at a face value (Rs.10)while the net assets value of the share is much higher say Rs. 250.
My question is whether he can do so as per company law and income tax law.
Further if he wants to gift his entire share to his relative what will be the implication
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Aditya Maheshwari

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Aditya Maheshwari (Expert)
11 April 2015 Whereas in my view Company act would not have a problem but it would become deemed gift u/s 56(2)(vii) of Income Tax act 1961.

If the gift is to relatives as defined u/s 56 then the same would not be taxable in the hands of the recepient.
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