Share transfer taxability

Yes, equity shares can be transferred.

The taxability of the transfer of equity shares depends on whether the shares are listed or unlisted.

1. If the shares are listed, then the capital gains tax is applicable on the transfer of equity shares. The capital gains tax is calculated based on the difference between the purchase price and the sale price of the shares. Short-term capital gains (STCG) tax is applicable if the shares are held for less than 1 year and long-term capital gains (LTCG) tax if the shares are held for more than 1 year.

2. If the shares are unlisted, then the capital gains tax is applicable on the transfer of equity shares. The capital gains tax is calculated based on the difference between the fair market value (FMV) of the shares on the date of acquisition and the sale price of the shares.