Transfer of equity shares

This query is : Resolved

RAVI SONI (Querist)
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08 August 2012 There are 3 assessee in the present situation Mr.A, Mr.B & A (HUF). Mr.A & Mr.B are own brothers.
About 10000 shares of a Private Limited Co. was acquired by A (HUF) during the year 2007 at Rs.3/- per share.
A (HUF) wants to transfer all the shares to Mr.B and currently as per valuation of the Co. price per share is Rs.15/-.
Please suggest me how the shares held by A (HUF) can be transferred to Mr.B without incurring any tax.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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10 August 2012 The total LTCG comes to Rs. 1,20,000 BEFORE INDEXATION.

After indexation, the gain will be even less.

Since the gain is less than the taxable income (Rs. 2,00,000) there will be no tax liability, ASSUMING HUF HAS NO OTHER INCOME.

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