If the shares are transferred by way of gift then whether the stamp duty is required to be paid or not?
Menu
Gift of shares
Replies (2)
Yes, as per Article 62(a) of Indian Stamp Act 1899, duty is payable @ 25 paise for every Rs.100 or part thereof of the value of the shares. Hence even if consideration is NIL, stamp duty is payable.
Dear Ms. Mamta
AMOUNT (ENTRY 62, SCHEDULE I, OF INDIAN STAMP ACT, 1899)
The Government has prescribed a stamp duty of, Rs.0.25 for every hundred rupees (100 RS.) or part thereof the value of the share, i.e. the price at which shares were brought (commission price), and not the face value of shares under transfer.
Violation of this provision will attract penal provisions to the company, under stamp Act.
In case of gift of shares there is a necessity to mention the consideration as the shares are being transferred free of consideration. However, stamp duty thereon will have to be paid on the basis of the market value of the shares on the date of the gift.
Regards
Recent Topic
- Long Term Capital Loss - Tata Capital unlisted sha
- Section 54F deduction - GST and Stamp Duty cost wh
- Professional Crossed 20 Laks in Dec 26 Failed to T
- F&O in ITR
- CA Final Self pace Module
- Query Regarding House Ownership Transfer Reflected
- Money transction within Family
- ITR-2 salary breakup updation
- Application for ₹2 Crore Term Loan under Cre
- ITR-2 Schedule CG: Indexation cost ignored for lan
Related Topics
CAclubindia
