Share transfer

This query is : Resolved

j.b.sheth

j.b.sheth (Querist)
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24 May 2012 At what price can a member(huf) of the pvt. ltd. company transfer his shares to the director(karta of the said huf) of the company?
In case it is transferred at face value than how will the HUF recognise its loss? will that be allowable under Income tax?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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24 May 2012 The shares can be transferred at any price decided mutually among the parties.

If the price is less than the acquisition cost the same will be long term/short term capital loss and is allowed.

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prateek aanchalia

prateek aanchalia (Expert)
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24 May 2012 agree with above. u also know that both short term and long term gain are taxable. because long term gain not exempt u/s 10(38) STT paid transaction in that case.

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