Change of Joint ownership to single ownership
This query is : Resolved
26 January 2022
I was allotted shares of my company in lieu of vested stock options at a certain price. In order to buy the shares I was given a loan by an Employee Welfare Trust and the shares alloted were issues with me as the first owner and the Employee welfate trust as second owner.
After the loan was repaid, the name of the Employee Welfare trust was removed by notung this as a transfer to my name in the Memorandum of Transfers in the physical share certificates.
The FMV at the time of this transfer was more than the original exercise and issue price of the shares.
Does this difference qualify as "Income from other sources" or not.
My contention is that shares were in my name all the time so it is not an income if the share price has appreciated in the meanwhile till I dispose of the shares. What section of various Acts can I use to substanitate my claim.
After the loan was repaid, the name of the Employee Welfare trust was removed by notung this as a transfer to my name in the Memorandum of Transfers in the physical share certificates.
The FMV at the time of this transfer was more than the original exercise and issue price of the shares.
Does this difference qualify as "Income from other sources" or not.
My contention is that shares were in my name all the time so it is not an income if the share price has appreciated in the meanwhile till I dispose of the shares. What section of various Acts can I use to substanitate my claim.
26 January 2022
Your contention is right. For the purpose of security for loan granted it was held in joint name.
27 January 2022
Thank you Seethraman Sir. What documents by way of notifications/govt. rules can I refer to support my contention.
27 January 2022
Loan agreement will support your contention.
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