A HUF have some shares in there books. HUF Consists of four members. they want to gift these shares to one of the member. can they do so ??if yes what is the process. If no what is the other way out.
25 November 2013
HUF can gift the shares to the members but it will attract the provisions of partial partition, which is not recognised by the IT Act. Income from the shares or from the amount received on sale of shares is required to be added back in HUF. . The better way is to sell off the shares whenever a good price is fetched. . You can divide the capital gains as the same is called distribution of income. .
26 November 2013
Then.... shares can be gifted. There is no restriction on transfer of shares, but - the problem which may arise -has already been discussed in the earlier reply. .
CAclubindia
