Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

can shares be transfered as GIFT?

pinkush (cs) (34 Points)

04 May 2010

i have a query:

IF Mr A WANTS TO TRANSFER SHARES TO HIS SON CAN HE TRANSFER IT AS A WAY OF GIFT??

CAN TRANSFER OF SHARES IN KIND ALLOWED??

ITS URGENT

Reply
Follow
Share

14 Replies

praveen (Chartered Accountant) (6971 Points)
Replied 04 May 2010

yes anything can be transferred as gift.

shares are almost readily convertible to money and is like any currency and can be transferrable as gift.

Upgrade to CAclubindia Pro. Subscribe Now!

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 04 May 2010

Pinkush, though shares can be transferred as gift, but mind it that while selling it to third party.., cost of shares will be taken cost to the previous owner, i.e the person who gifted them

1 Like

CS Mayur Buha (Company Secretary) (238 Points)
Replied 04 May 2010

As per Income tax Act, 1961, in case of Gift, the cost of capital would be considered the cost of privious owner. and as per co. law no needs to ascertain the cost of capital.

1 Like

Parth - CA,CS,CMA (Learner) (406 Points)
Replied 04 May 2010

Yes they can be gifted... And as far as they are gifted to relatives, the transaction of gift is not taxable.. If they are gifted to person other than relative, it's taxable after 1st Oct., 2009

Pradip Narsingani (Income Tax & GST Consultant/ CA-Final) (572 Points)
Replied 04 May 2010

yes he can./././ not only share, you can tarnsfer any thing as gift

Upgrade to CAclubindia Pro. Subscribe Now!

CA Devanshi Gandhi (Ajani) (FCA DISA Mcom CIFRS & LLB) (9060 Points)
Replied 04 May 2010

yes it can be transfer as gift

1 Like

keshav singh (Chartered Accountant) (33 Points)
Replied 05 May 2010

Yes, Share can be transfer as gift,

1 Like

* CHETAN MOURYA * (CA) (88 Points)
Replied 05 May 2010

Yes the same can be transfered as Gift.

@*CS Siddharth Bumb. * (B.Com, CA Final, CS ) (5270 Points)
Replied 05 May 2010

yes agree with dhiraj

pinkush (cs) (34 Points)
Replied 07 May 2010

THANKS A LOT FOR YOUR REPLIES DO WE HAVE TO PASS RESOLUTION FOR THIS OR NE OTHER FORMALITIES

Upgrade to CAclubindia Pro. Subscribe Now!

Ankit CA and CS (Manager - Accounts) (204 Points)
Replied 07 May 2010

Shares can be transferred as gift. But there is an exception to this theat shares transferred should not be sweat equity shares.. as it will be regarded as transfer u/s 45 of IT Act.

shradha (self employed) (21 Points)
Replied 31 January 2011

hi, sure, but can a company gift shares?

CS Snehal (Compliance Manager) (346 Points)
Replied 31 January 2011

If the person wants to transfer the shares to his son through Gift Method, the same should be gifted by the way oF GIFT DEED ; and on a Rs. 100/- or Rs. 300/- stamp paper.