Dear Friends,
My mother wants to transfer some of her shares held in a private limited company in Maharashtra to me by way of gift through a gift deed.
I understand that even though share transfer is taking place with out any consideration the stamp duty to be paid with share transfer form is 0.25% of market value.
I want to know, if in addition to this 0.25%, should there be a stamp duty of 2% of market value along with the gift deed?
Or should it be a gift deed on a stamp paper of Rs 500?
A friend suggested that if a proper gift deed with 2% stamp duty is not executed then my mother would attract a long term capital gain of 20% on the market value of shares. Is it correct?
Please advise me accordingly.
CAclubindia
