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
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
CAclubindia
