transfer of shares

can a director transfer his individual shares from his own account into his companies demat account???

i want to know wht will be the accounting entry and its taxation effects on the company and the individual both

plz tell as early as possible 

regards

vibha

Replies (5)

Dear Vibha

Your question is not clear. Please elaborate the same.

However, what I understant is that company can hold share in its Demat account upon getting the share in its name by its director. I am presuming transfer means transfer of ownership as well.

Regards / Sudhir

 

plz see and reply this case its very urgent sir

If Articles is providing that a director should hold qualification shares then if he transfers the shares to company provided it does not affect his qualification entries and if he transfers shares to the company, it is not transfer its buy back for the company, the company must be authorised by a resolution for buying back the shares. for buyback this is the entry.

          Shares Bought Back A/c Dr       xxxxx

             To Bank a/c

and to the extent of face value of shares bought back

         Share capital  A/c Dr                    xxxxx

            To Shares Bought Back a/c 

     and difference to be transfered to revenue reserve (dr balance)

Mr. Vibha if you solved the issue, kindly tell me the same how you did....

i m asking not about the mother companies shares but about the other companies

If a director transfers his shares to other companies other than the company which issued then depending upon the holding period it will be a sale a taxable as income from capital gain

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