Gifting Private Limited Shares

Gifting shares in a private limited company involves a gift deed and SH-4 form. The gift deed declares the intention to gift shares, while the SH-4 form records the transfer. The recipient must declare the gift's value in their income tax return, and it's advisable to consult a tax professional. Additional considerations include stamp duty and company's Articles of Association. Consult a legal or financial advisor for proper compliance.

Hello Asha Ji - Thank you for your response. Does the person giving gift have to be a relative of the person receiving gift (Covered in definition of the relative by Companies Act) or it can be even a non-relative giving gift and receiving gift ?

If the gift value is less than 50000 Rs. does the recepient have to even declare it in Income Tax? In our case the book value of these gifts share value is less than 5000Rs. 

Thank you again