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Share transfer without consideration in private ltd company

Akshi Gvalani (14 Points)

02 November 2017

What is procedure and stamp duty required for transfer of shares via gift deed in a Private Limited Company.

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Ravi Rupareliya (Industrial trainee) (30 Points)
Replied 02 November 2017

Hi akshi Transfer of shares as gift in the demat form does not attract any stamp duty. Whereas the stamp duty will be charged on the transfer of shares in the physical form even as gift. It will be at the same rate of 0.25. Since, there is no consideration value for the gift transfer, the stamp duty is calculated on the market value on the date of transfer. The stamp duty is indifferent for the gift transfer to spouse or other relatives. Also, it is optional to register a gift deed for share transfer as per Indian Registration Act, 1908.

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