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Share transfer taxability

shivam bhatia (231 Points)

20 January 2023

Can we transfer the equity shares?
if yes, what's the taxability?

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4 Replies

Prashant Daga (183 Points)
Replied 20 January 2023

If share transfer as sale then assessee Lible to pay tax either short term or long term depend on situation....but if capital assets (like share) transfer as gift no tax liability arise in the hands of transferor

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Kriti (n/a) (300 Points)
Replied 20 January 2023

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.

shivam bhatia (231 Points)
Replied 20 January 2023

Thank you so much

sabyasachi mukherjee (26047 Points)
Replied 23 January 2023

Share ,stocks and mutual fund are all capital asset.
Any sell or transfer of capital asset capital gain Short term or long term as the case may be.
If the shares are unlisted then it cannot be held or cannot be sold.
so it amounts to capital gain tax.