What is the procedure to tranfer shares by way of gift by a director of private limited company to her son?
Also is such transfer taxable under the income tax act 1961?
Menu
Gifting shares
Replies (1)
For procedure of transfer of shared refer this link -> /experts/transfer-of-shares-in-private-limited-company-337345.asp#.UK8eROSR85k
Taxability of such transaction under Income Tax :
In the hands of transferor i.e Director : This transaction shall not be regarded as transfer by virtue of section 47 hence nothing is taxable in the hands of transferor i.e. Director.
In the hands of transferee i.e Son of Director : The transaction is not taxable u/s 56(2)(vii) as gift received from RELATIVE is not considered under the said section.
- Ruben Balooni
Recent Topics :
- LTCG: Home Loan Principal Repayment?
- Ims action relationship query
- GIFT REGARDING
- TDS on salary to non resident managing director
- Ewaybill and Transport documents (Lorry receipt)
- LTCG on sale of Builder Buyer Agreement
- Rule 13(2)(h) and valuation of CCDs
- Leave encashment, New labour code, Management cadr
- GST clarification needed:
- TDS processed with short deduction default
Related Topics :
CAclubindia
