Transfer of shares by way of gift

Others 18258 views 5 replies

BHAVINI SHAH

Company Secretary

193 Points Joined 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.

Top

Replies (5)

Ankur Garg

Company Secretary and Compliance Officer

114788 Points Joined January 2009

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

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 Joined January 2010

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

Sameer Desai

Company Secretary

22 Points Joined October 2012

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.