Transfer of Shares
My client which is a young start up has been approached by one of the investors with request to transfer their holdings into a different company. Are there any tax implications of that. The start up is losses but the shares have increasing value more
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There is no tax implication for the start up co as only the shareholders' names(s) are changing. The capital gains tax will be leviable on the investor who is transferring the shares from his/her/relatives' name to another co under his/her control. So the start-up co (assuming its pvt ltd co) should do the following:- a. tell the investor(s) to send a letter for request of reg of share trf. b. get the certificates back and get the sign of old investor in the back of the share certificate and write name of new investor( individual/co.) c. convene a board meeting and put on minutes the share certificates which have been transferred with certificate no., distinctive no.of shares and transferee(newowner) and transferor( old owner) names. d. Update the shareholders' register and give back the certificates to new holder(transferree) more
Oct 15
The seller has to pay capitalgains tax as applicable if it is not a listed company and securities transaction tax is not paid. he will also get indexation benefit if it is long term capital gains if has held the share for more than one year. more
Sep 24
what is way of providing 124 pts to this post, is he giving any valid information to this forum members or any valid information is shared amongst members, he is seeking help from members of this forum I dont understand sanctining points formula !!! more
Sep 24
