Transfer to trust
This query is : Resolved
vijay sharma
(Querist)
25 August 2015
what is the procedure when an individual want to transfer jewellery and shares to a family trust
vijay sharma
(Querist)
25 August 2015
pls reply
it is urgent for me
it is urgent for me
02 August 2025
Transferring jewellery and shares to a family trust involves both legal and tax considerations. Here’s a straightforward overview of the typical procedure:
---
### Procedure to Transfer Jewellery and Shares to a Family Trust
#### 1. **Establish the Family Trust**
* A **trust deed** must be drafted, clearly defining:
* The settlor (the person creating the trust)
* The trustee(s)
* The beneficiaries (family members)
* The purpose and terms of the trust
* The trust deed should be executed on stamp paper as per local laws and registered if required.
#### 2. **Transfer of Jewellery**
* Jewellery is a **movable asset**.
* The transfer can be done by:
* **Executing a gift deed** in favor of the trust (if the trust is the beneficiary)
* Or a **transfer deed** depending on trust terms
* The gift deed should mention the description, valuation, and transfer details.
* Get the jewellery **valued** by a registered valuer for documentation and tax purposes.
* If applicable, pay **gift tax** or disclose transfer under Income Tax rules (gift from individual to trust can have tax implications).
#### 3. **Transfer of Shares**
* Shares can be transferred to the trust by:
* **Executing a share transfer form (SH-4)** signed by the transferor.
* The transfer must be approved by the company’s board if shares are in a private company.
* Update the **shareholder register** to reflect the trust as the new shareholder.
* Ensure proper valuation of shares (by a registered valuer) to comply with tax rules.
* File necessary forms with the Registrar of Companies (ROC) if required.
#### 4. **Tax & Legal Compliance**
* Consult a tax expert to handle **gift tax, capital gains tax, and stamp duty** implications.
* Disclose transfer in income tax returns as per provisions of **Income Tax Act**.
* Maintain proper documentation to substantiate the transfer for future reference.
---
### Summary Table:
| Step | Action Required | Documents Needed |
| ------------------ | -------------------------------------- | ------------------------------------------------------- |
| Create Trust | Draft and execute trust deed | Trust deed on stamp paper |
| Transfer Jewellery | Gift deed/transfer deed + valuation | Gift deed, valuation report |
| Transfer Shares | Share transfer form + company approval | Share transfer form, board resolution, valuation report |
| Tax Compliance | Consult tax advisor + file returns | Tax filings, valuation reports |
---
If you want, I can help draft a sample **gift deed** or **share transfer form** or guide you through the tax aspects! Would you like that?
---
### Procedure to Transfer Jewellery and Shares to a Family Trust
#### 1. **Establish the Family Trust**
* A **trust deed** must be drafted, clearly defining:
* The settlor (the person creating the trust)
* The trustee(s)
* The beneficiaries (family members)
* The purpose and terms of the trust
* The trust deed should be executed on stamp paper as per local laws and registered if required.
#### 2. **Transfer of Jewellery**
* Jewellery is a **movable asset**.
* The transfer can be done by:
* **Executing a gift deed** in favor of the trust (if the trust is the beneficiary)
* Or a **transfer deed** depending on trust terms
* The gift deed should mention the description, valuation, and transfer details.
* Get the jewellery **valued** by a registered valuer for documentation and tax purposes.
* If applicable, pay **gift tax** or disclose transfer under Income Tax rules (gift from individual to trust can have tax implications).
#### 3. **Transfer of Shares**
* Shares can be transferred to the trust by:
* **Executing a share transfer form (SH-4)** signed by the transferor.
* The transfer must be approved by the company’s board if shares are in a private company.
* Update the **shareholder register** to reflect the trust as the new shareholder.
* Ensure proper valuation of shares (by a registered valuer) to comply with tax rules.
* File necessary forms with the Registrar of Companies (ROC) if required.
#### 4. **Tax & Legal Compliance**
* Consult a tax expert to handle **gift tax, capital gains tax, and stamp duty** implications.
* Disclose transfer in income tax returns as per provisions of **Income Tax Act**.
* Maintain proper documentation to substantiate the transfer for future reference.
---
### Summary Table:
| Step | Action Required | Documents Needed |
| ------------------ | -------------------------------------- | ------------------------------------------------------- |
| Create Trust | Draft and execute trust deed | Trust deed on stamp paper |
| Transfer Jewellery | Gift deed/transfer deed + valuation | Gift deed, valuation report |
| Transfer Shares | Share transfer form + company approval | Share transfer form, board resolution, valuation report |
| Tax Compliance | Consult tax advisor + file returns | Tax filings, valuation reports |
---
If you want, I can help draft a sample **gift deed** or **share transfer form** or guide you through the tax aspects! Would you like that?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Capital Gail Exemption Certificate
- Taxation of crypto futures in India Fy 2026- 2027
- MSME disclosure and disallowance
- EPF ECR NEW RULES Sep 17th 2026
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Issuing of delivery challan by seller of goods
- Accounting treatment of AMC alongwith the purchase of Laptop
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
