In case of gift of shares, is it compulsory to mention market value / cost to the donor in gift deed?
CA Abhilasha Bhagat (ACA) (466 Points)
14 November 2014In case of gift of shares, is it compulsory to mention market value / cost to the donor in gift deed?
Ankit
(CA, CS)
(3064 Points)
Replied 14 November 2014
Ideally Yes Abhilasha...you should mention it. However, if they are listed shares, you may opt not to mention it also, since the value of the shares is readily available.
But still, even for listed shares, it is advisable to mention it
CA Abhilasha Bhagat
(ACA)
(466 Points)
Replied 14 November 2014
Okay, so your suggestion is to mention market value from BSE etc in case of listed shares and in case of unlisted shares, we need to do valuation as per rule 11 UA of income tax rules and mention acccordingly..
Am I interpreting it correct?
Ankit
(CA, CS)
(3064 Points)
Replied 14 November 2014
Yes...you are right...
The reason is to avoid any descripancy and to have a certain value to the gift.
CA AnKiT BoHrA (AB)
(Manager)
(25955 Points)
Replied 14 November 2014
ya, agreed with ankit.. u should do the valuation to find the value of gift....!!!
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
