Transfer of shares from individual to huf

Others 4228 views 10 replies
whether transfer of shares demat to demat from individual to huf will amount to transfer as per income tax act 1961?.
Replies (10)
No....
No it is not regarded as transfer because when you transfer shares to huf then it is treated as a gift and gift to relatives is not amount to transfer as per income tax act 1961.

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As far as i read it it will attract section 64(2) of income tax act 1961. Want to confirm the same.
No....
Refer my answer caoffice
For a HUF( donee - receiver ), the member of the HUF being an Individual ( donor - giver ) is a relative for the purposes of Sec 56(2). So the gift is a taxfree transfer.

However, on a reading of Sec 64(2), it seems that income generated from the shares transferred would be clubbed In the hands of the individual.
Agreed with raj c doshi
Whenever we transfer the share through share transfer slip, it is mandatory to mention the reason of transfer without which it can not be transfered.
Reason could be gift, sale( in case of sale- selling price needs to be filled- preferred FMV should be filled). One can also share the payment mode details like neft no, cheque no.

These data must be shared with IT deptt by SEBI.

Now come to your question, demat transfer can be treated as transfer if u perform transaction just like transaction with outsider and share all the details on share transfer slip.
Agree with above comment

Hi Aakarsh ji just had one question

Recently I had transferred equity shares from an huf demat account to an individual demat account who is not a co parcener.

How to account for this transaction and what will be the tax liability?


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