Devendra (Qualified Audit Assistant) (521 Points)
09 December 2008I will describe my query by giving an illustration.
Mr.A purchased the shares of ABC Limited through recognised stock exchange for Rs.900. Current market value of the share is Rs.400. Now if Mr.A transfers these shares to his spouse for Rs.400, then can it be said that the shares are transferred for adequate consideration ? Or does Mr.A has to transfer the shares to his spouse at Rs.900 only for avoiding clubbing provisions ?
CA CHINTAN AJMERA
(Chartered Accountant)
(2987 Points)
Replied 09 December 2008
Mr.A transfers these shares to his spouse for Rs.400 and it can be said that the shares are transferred for adequate consideration no clubbing provision apply for this transaction.
CAclubindia
