Gifting bonus shares at 0 price to a friend

1. No tax liability on either of you when you gift shares to your father.
2. When father sell the shares depending upon the holding period by you both capital gain would be charged as STCG or LTCG.
3. If it is LTCG & all the conditions as per sec. 54F are satisfied,he can claim exemption under the section.

I hope there is no limit on the amount of gift fo this treatment.

No limit provided it is on record.

If this is to a friend what are the implications 

Tax liability over the gift receiver... if value more than 50K.

Is the tax liability an income from other source ?

can i not determine it as "bonus share at 0 price" making 0 income 
is it valued at fair market price as buy price and capital gains is computed on his sale price when my friend sells it 

Tax liability when gift received is income from other sources, based on its current FMV.

When sold by the gift receiver it will be capital gain...

For the donor there is no tax liability when gifted..