Tax on Transfer of Listed Shares

What are the tax implications on transferor and transferee on transfer of listed shares without any consideration to Non relative.
Replies (5)
Quick Summary
This discussion clarifies the tax implications when listed shares are transferred without any payment to a non-relative. The transferor may face capital gains tax, either long-term (LTCG) at 10% or short-term (STCG) at 15%. For the transferee, if the fair market value of the shares exceeds £50,000, it could be taxed as a gift under Section 56(2)(x), with an initial exemption up to £100,000 for LTCG and STCG.

Taxability for transferor -
Taxable as capital Gains (w/o indexation)
chargeable u/s 112A @ 10% (LTCG) or 111A @ 15% (STCG)

Taxability for Transferee -
Taxable as Gift u/s 56(2)(x) if FMV of shares > 50,000
For STCG shares u/s 112A @ 10% and for LTCG @ 15% u/s 111A Upto 100000 rupees is exempt
Sourav
LTCG is 112A @ 10% (1,00,000 exempt)
and STCG is 111A @ 15%
Thank You Everyone.
Yes you're correct Ajinkya, It's a typing mistake

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