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Transfer of shares by way of gift

BHAVINI SHAH (Company Secretary) (193 Points)

12 April 2012

Transaction of transfer of shares by way of gift:-

first of all we prepare a board resolution approving the said transfer
here do we mention that the transfer is by way of gift or a regular transfer resolution will suffice?

then the transfer form recording the said transfer and pay stamp duty on it or franking on the same.

entry on the reverse of the share certificate

enter in the statutory register
here should we mention the consideration as NIL as it is by way of gift or leave the field blank?

Please make corrections / additions in the said summary of the whole transaction.

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5 Replies

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 12 April 2012

Hi,

The procedure for registration of shares gifted is same as the procedure for a normal transfer.

The transfer of shares via gift will attract stamp duty (share transfer stamps) even if no formal consideration involved. The stamp duty payable in case of transfer of shares by way of gift would be in the same way as in case of other transfers.

The stamp duty payable for registration of gifted shares would be @ 25 paise for every Rs 100 or part thereof, of the face value or the market value of the shares prevailing as on the date of the document, if any, conveying the gift or the date of execution of the transfer deed, whichever is higher.

In the resolution kindly mention transfer of shares by way of gift. In the consideration column you may mention “transfer by way of gift”.

Regards

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(Guest)

Originally posted by : Ankur Garg
	The transfer of shares via gift will attract stamp duty (share transfer stamps) even if no formal consideration involved. The stamp duty payable for registration of gifted shares would be @ 25 paise for every Rs 100 or part thereof, of the face value or the market value of the shares prevailing as on the date of the document, if any, conveying the gift or the date of execution of the transfer deed, whichever is higher.

Hi Ankur,

I have another view here. According to me stamp duty is not payable on the gifted shares @ 25 paise for every Rs. 100/-. However, gift deed should be registered and stamped as per relevant stamp act applicable.

Such duly stamped gift deed is sent along with form 7B (transfer deed) to the company for transfer of shares. Form 7B (transfer deed) is not stamped by pasting share transfer stamps.

Also clarify whether share transfer stamp duty can be paid by way of franking or it has to be by way of purchase of stamp tickets ?

Regards.

Sushil Kumar Mohanty (Accountant) (137 Points)
Replied 18 April 2012

sir attach herewith a resolution format for share trasnfer by way of gift

1 Like

Sameer Desai (Company Secretary) (22 Points)
Replied 31 October 2017

Ankur Sir,

For Gifting of shares from karta of HUF to Individual person or co-parcners do we required to take gift deed, affadavit and confirmation for the same.