Transfer of shares of a pvt ltd co.

This query is : Resolved 

(Querist)
03 July 2014 A private limited company has 2 shareholders. During the current year,3 new shareholders are issued shares for want of funds. In addition to cash, one of them (not a relative to any shareholder) gets a % of shares from both the existing holders without paying any consideration.

In such a case, Capital gain on the hands of existing shareholders will not apply due to no consideration being received? Will the recipient be taxed for the full amount of share value ?

04 July 2014 if the fair market value of share transfered exceeds rs fifty thousands, the whole of the aggregated fair market val;ue will be income in the hands of tranferee( receipent of shares. pls refer to section 56(2) vii c.FMV WILL BE DECIDED AS PER RULE 11U AND 11UA



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries