Stamp duty on transfer of shares through gift deed

This query is : Resolved

Chandan Gupta (Querist)
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22 December 2011 Dear Members....

please provide your valuable suggestion...

1. what would be applicable rate of stamp duty in case of transfer of shares through gift deed...whether 0.25% as applicable in case of transfer of shares or 5% of consideration aqmount as applicable on transfer through gift?

2. What would be the mode of payment of stamp duty in above case when the amount of stamp duty is huge...

Guest

Guest (Expert)

22 December 2011 Stamp duty is not paid on gift of shares since 0.25% is paid on consideration amount which is nil in this case.

According to me there is no stamp duty on transfer of shares through gift.

However views of other members are also solicited.

Chandan Gupta

Chandan Gupta (Querist)
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26 December 2011 Yes U r right Nehaji...as there is no consideration involve in transfer of shares through gifts, hence we are not required to pay stamp duty on tranfer of shares ...As per Delhi Stamp Act the applicable rate of stamp duty is 5% of Consideration amount involved in case of gift.{refer point 33(Gift) read with point 23 (CONVEYANCE)thats why i have doubt in mind.......
plz. clarify.....

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Guest

Guest (Expert)

26 December 2011 Hi Chandan,

According to Rajasthan Stamp Act, stamp duty on gift is :

"The same duty as on a conveyance (No. 21) for a market value equal to the market value of the property which is the subject matter of gift"

and according to conveyance (Point no 21), stamp duty on movable property is :

if relating to movable property : Half (0.5) percent of the market value of the
property.

if relating to immovable property : Eleven percent of the market value of the property

if relating to amalgamation of companies by the order of the High Court under Section 394 of the Companies Act, 1956 : Ten percent of the market value of the
property.

Thanks!