In Maharashtra, the stamp duty for the transfer of unlisted shares by gift is 0.25% of the aggregate value of the shares being transferred. Generally, it takes 1-2 weeks for the transfer of shares by gift to be recorded in the Registrar of Companies (ROC) after submitting the relevant documents. No, you cannot sell the shares before they are transferred to you and recorded in the ROC.
Can Unlisted private company shares received in gift be sold immediately
Dear Sir/Madam, My father would gift me Unlisted private company shares.We would register a gift deed.Pay stamp duty of 0.25 per Rs.100 of Net worth, We will submit gift deed, share certificate and share transfer form to the company 1)Pls confirm stamp duty to be paid on this transaction in Maharashtra 2)How much time does it take for transfer of shares by gift to get recorded in ROC 3)Can I sell those shares immediately before transfer of shares by gift is recorded in ROC ???
Asked 1 year ago in Business Law
6 Answers
On the sale of such shares & securities, report income as capital gains under Schedule CG. The taxpayer should file ITR-2 on the income tax website and pay tax at applicable rates.
2) The stamp duty payable of transfer of shares in physical form shall be 0.015% of the total market value of the shares. Market Value means Price /consideration mentioned in the particular instrument i.e. share certificate.
3)we cannot say how long it would take for transfer to be recorded in ROC records
Since the gift deed covers the shares of a company that your father is transferring to your name, you do not have to pay any other stamp duty in addition.
2. It depends on the how you follow it up by complying with all the requirements required to be complied in this regard.
3. You can sell the shares only after it is properly transferred to your name because until then you are not having proper title to the shares hence you may not be able to sell the shares.
- 1. Since, your father is going to gift the shares , then in Maharashtra there is no stamp duty except payment of Rs.200/-
2.. It may take short time ,
3. Before transfer of shares in your name and gift is recorded in RCC, you cannot sell .
Yes you can sell the share immediately once it's transferred in your name
The stamp duty on the gift deed for transfer of unlisted shares in Maharashtra is 0.25% of the market value of the shares, subject to a cap of Rs. 25,000.
The transfer of shares by gift has to be recorded in the ROC within 60 days from the date of execution of the share transfer deed. The company has to file a return of allotment with the ROC within 30 days from the date of recording the transfer of shares.
As per the Companies Act, shares cannot be transferred until they are recorded in the books of the company. Therefore, you cannot sell the shares immediately after execution of the share transfer deed but before the transfer is recorded in the ROC. However, you can sell the shares after the transfer is recorded in the ROC.
