Hello - I have a quick question on gifting shares.
We have a shareholder in private limited company with 2 shares out of 10000 and he wants to transfer those 2 shares to another non-related shareholder (as they are not falling in the definition of relative as per companies acts). The value of these shares is Rs. 10 each (So Total 20). We will get a gift deed and SH4 Form signed for the gift.
1- Is there any issue with doing a gift deed in this situation?
2- Does the shareholding these shares have to declare Rs 20 as income in his Income Tax?
Thank you for your quick response.
CAclubindia
