transfering of shares by way of gift

Hi, Smita

Execute Gift Deed and get it registered with Company. The procedure for registration of shares gifted is same as the procedure for a normal transfer. The stamp duty payable for registration of gifted shares would be @ 25 paise for every Rs 100 or part thereof, of the face value or the market value of the shares prevailing as on the date of the document, if any, conveying the gift or the date of execution of the transfer deed, whichever is higher.

Regards

Jaideep Pandya

Thanks Jaideep for your prompt reply.

Could you please guide me on procedure of tansfer of shares.

Smita

For transfer of share follow normal procedure using Transfer Deed..................

Regards

I assume if we have to transfer shares via gift then we have to prepare Gift deed as well as Transfer deed.

If it is right then please let me know do we have to affix stamp duty of 25 paise for every Rs 100 both on gift deed and transfer deed.

Dear Smita,

Stamp duty of @ 25 paise for every Rs 100 or part thereof has to be paid on transfer deed as per Companies Act and rules thereunder.

As per my knowledge, Gift deed can be prepared on Rs.100 non judicial stamp paper. Here stamp duty will be applicable as per Gift Act.

Regards

Jaideep Pandya

If i prepare a gift deed on stamp paper of Rs.100 then i think the value of stamp duty on gift is Re. 1 for every Rs. 10,000 or part thereof (approx. 0.01%).

Please confirm if some where i am going wrong.

Originally posted by : Jaideep
	Stamp duty of @ 25 paise for every Rs 100 or part thereof has to be paid on transfer deed as per Companies Act and rules thereunder.   As per my knowledge, Gift deed can be prepared on Rs.100 non judicial stamp paper. Here stamp duty will be applicable as per Gift Act.

Bost has to be paid seperately...for stamp rate on gift, will be as per stamp duty prevailing in that state...

Jaideep is right with respect to 025% and Rs. 100 is concerned. 

There is no gift Act at present and therefore there is no additional stamp duty as per that Act. 

Even otherwise the stamp duty was never driven by Gift Act

Gift deed shall be executed on stamp paper according to the respective State Stamp Duty Act. e.g. in case of Rajasthan, Gift deed shall be executed on stamp paper valuing 0.5% of market value of Share.

Further The stamp duty payable for registration of gifted shares would be @ 25 paise for every Rs 100 or part thereof, of the face value or the market value of the shares prevailing as on the date of the document, if any, conveying the gift or the date of execution of the transfer deed, whichever is higher.

I want to know if the transfer duty is applicable for gifting of shares in Demat form also. I believe that it may not be required to be paid. Also is it necessary to get the gift deed registered in case I gift my shares to my mother. What will be the tax implications in this case for me as well as my mother.