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?
1 Replies
CA Ruben Balooni
(Professionalism ™)
(1324 Points)
Replied 23 November 2012
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
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