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Reporting of unlisted shares

15 July 2019

If A, B and C are joint holder of X pvt. ltd. holding 10000 shares of rs. 10 each. If A the first Holder have contributed nothing and B and C have invested 50K each. Now who will report holding of shares in their ITR. Since first holder is recognized by Company Law so whether first holder should report and others should not show anything ?

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4 Replies

Ravi SADhiyan (Practice) (4510 Points)
Replied 15 July 2019

Without contribution how to hold share in Company

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Nisha Agrawal (20 Points)
Replied 16 July 2019

Ravi ji company has received it's share consideration. It has no concern who has paid the money among joint holders. B and C has paid the entire sum.

Ravi SADhiyan (Practice) (4510 Points)
Replied 16 July 2019

Share share holding of each shareholder under your mentioned company

Suresh Thiyagarajan (Student) (3986 Points)
Replied 16 July 2019

1. Company may issue a share in Joint names as long the consideration is paid (whether by SH or any other person). The important consideration here is that who effectively holds the rights of the shares with respect to the transfer and other aspects such as receipt of dividend and voting rights.
2. The above consideration will play a vital role in deciding who is the benefitial owener of such shares.
3. With respect to reporting of such shares, ITR to my knowledge will not ask to report wealth or assets held by the assessee unless in certain cases. So if you willingly wanted to show the shares in the ITR (if the releavnt column is available ) then the above consideration can be applied to determine the beneficial owner of the shares. This is based on my own logic. If you wanted to have complete clarity on the above issue, it is better to approach a consultant or an expert.
Please correct me if the above solution has an alternative view.