Gifting shares

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