Transferring shares to a new private limited company

Her shares to another company? Meaning cross holding? Or she is selling the shares and then transferring? Kindly eloborate.

Thanks for the reply Mr.Kulkarni. She holds some investments as assets - shares in listed companies. Now, instead of holding them in her own name, she wants to hold the investment through a private limited company. She is a salaried employee now, but will be giving up her job to become an entrepreneur this year. In that process, she wants to transfer her assets and liabilities to the company in order to strengthen the balance sheet of the company.

This shall be treated as transfer. If it is equity shares which is held for more than 12 months then it is not taxable it is exempt u/s 10 (38) if securities transaction tax is paid on the same. If not it is taxable.

Thanks! There are some shares held for less than 12 months. Can she take advantage of S 46(xiv) and transfer the shares as a part of sole proprietorship succeeded by a company?

She is a salaried employee right? If that is the case then she cannot take the benifit of the said section.