yashsr (CA) (2285 Points)
23 December 2012What is the treatment of Gift of Shares of Pvt Ltd Company by HUF to its karta? Is it liable to capital gain? If yes, at what rate considering the following facts:
1) The shares gifted were received by the HUF as Bonus from the Company which means its cost is NIL
2) Shares are gifted within 365 days of bonus declaration which means it is Short Term for the purpose of Securities
Face Value of Shares is Rs.100
Member
(Management)
(325 Points)
Replied 24 December 2012
The karta will be liable to tax on the market value of the shares presuming the transfer is after 1.10.09. Refer Section 56(2)(vii). Cost to donor being zero is not a consideration here.
yashsr
(CA)
(2285 Points)
Replied 25 December 2012
| Originally posted by : Member | ||
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The karta will be liable to tax on the market value of the shares presuming the transfer is after 1.10.09. Refer Section 56(2)(vii). Cost to donor being zero is not a consideration here. |
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But isn't Karta a relative of the HUF now as per the recent amendment through Budget 2012 and hence exempt from Income from Other Sources?
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
